Rockpoint’s co-founders have been working and investing together for 25 years and have an average of 33 years of real estate/finance experience. Rockpoint’s senior investment professionals have an average of 19 years of real estate/finance experience.
Rockpoint focuses on maximizing risk-adjusted returns by employing a fundamental value approach to investing. This involves targeting high-quality, well-located assets with intrinsic long-term value.
Given the experience of the Rockpoint team, Rockpoint has and continues to build broad-based, substantive industry relationships with advisors, agents, operating partners, investors, lenders, and corporate/institutional owners of real estate.
Compelling Investment Opportunities
Rockpoint believes that it has a reputation for integrity, reliability, creative problem-solving and performing under limited time constraints. This reputation, combined with the continuity and longevity of its relationships, is expected to continue to generate attractive and often proprietary investment opportunities.
Rockpoint believes that it has a measured and disciplined approach to investment decision making, which takes into consideration broad macroeconomic trends in addition to market- and asset-specific factors. Rockpoint will not make an investment unless it has conviction that the investment has the potential to generate strong risk-adjusted returns.
Rockpoint maintains a proactive focus on maximizing cash flow through active asset management, including management of operating expenses, implementation of appropriate capital expenditure programs, repositioning under-utilized assets, and re-leasing vacant space as well as other revenue enhancement initiatives.
Alignment of Interests
Rockpoint is a privately-held company which makes meaningful co-investment equity contributions alongside its investors. Rockpoint also structures senior professionals’ compensation to be reliant on the successful performance of the Rockpoint Funds.
Institutional Risk Management, Compliance and Client Service
Rockpoint is a Registered Investment Adviser and has dedicated and experienced professionals who focus on accounting and financial reporting as well as compliance, risk and liability management.
Fundamental Value Approach
Rockpoint targets properties that offer intrinsic long-term value. Rockpoint seeks to acquire assets at attractive values relative to replacement cost and stabilized cash flow and to avoid opportunities where key value drivers are not real estate based. Rockpoint underwrites investments on an unleveraged basis and then customizes capital structures in an effort to optimize risk-adjusted returns. Rockpoint believes that its focus on value-oriented investing provides downside protection.
Geographical and Property Type Focus
Rockpoint targets primarily investments in office, hospitality and multifamily assets in major coastal markets in the United States. However, the flexibility to invest across markets, property types and capital structures is central to Rockpoint’s investment strategy. Rockpoint believes that this approach will allow it to maximize risk-adjusted returns at the portfolio level by proactively targeting specific investment types given existing market conditions.
Rockpoint targets real estate investments that fall into three broad categories:
Basis-driven investment opportunities. An important aspect of Rockpoint’s fundamental value approach is acquiring assets at attractive bases relative to replacement costs and stabilized cash flows, also with meaningful downside protection across varying market cycles.
Cash flow enhancement and value creation opportunities. Rockpoint is focused on acquiring high-quality, well-located assets with identifiable opportunities to increase cash flow and create value through active asset management and strategic property management. As part of the underwriting process, Rockpoint develops a strategic plan for each asset which generally (i) targets operating expense reductions, (ii) implements cost-effective capital expenditure programs to upgrade or reposition underutilized assets, and (iii) improves revenue streams through focused leasing and other initiatives. Rockpoint believes that its proactive approach to asset management and strategic property management provides value creation opportunities without relying on (i) robust economic growth, (ii) significant improvements in market fundamentals or (iii) ongoing strength in the capital markets.
Complex situations. Complex situations may offer attractive risk-adjusted returns, as they are often priced inefficiently due to asset-specific issues and/or short-term capital market dislocations. Examples of complex situations may include: (i) restructuring and/or recapitalizing dysfunctional or misaligned partnerships, and (ii) mezzanine debt, preferred equity or other hybrid securities for high-quality real estate assets.