Rockpoint’s co-founders have been working and investing together for 24 years and have an average of 32 years of real estate/finance experience. Rockpoint’s senior investment professionals have an average of 18 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, with the goal of providing meaningful downside protection across shifting market cycles.
Cash flow enhancement and value creation opportunities. Many investments Rockpoint pursues are expected to provide opportunities for near-term increases in value through proactive asset management and strategic property management. These opportunities may involve more focused management of operating expenses, implementation of capital expenditure programs, repositioning under-utilized assets, re-leasing vacant space and other revenue-enhancing initiatives. Additionally, in select instances and in certain markets that benefit from strong supply/demand fundamentals, Rockpoint may pursue discrete, best-in-class development or re-development opportunities that provide the potential for high returns with prudent levels of leverage.
Complex situations. Complex situations often involve multiple aspects of real estate investing and offer attractive risk-adjusted returns due to inefficient pricing. These investments may include restructuring and/or recapitalizing dysfunctional partnerships, originating highly structured debt or preferred equity positions, or other situations that are unique and therefore difficult to evaluate.