When selecting and managing investments, MintBlack focuses on the following key factors:
High-Quality, Unique Properties
Unique properties tend to maintain their value better than commodity-like properties in difficult times and tend to garner premiums in competitive times.
Discount to Replacement Cost
Acquiring properties in supply-constrained markets at a discount increases return potential.
Opportunities for Adding Value
These opportunities include:
- Repositioning and strategic capital improvements to enhance or reinforce the property’s desirability to tenants within the market
- Active leasing of vacant and rollover space to credit tenants at market-leading rental rates and terms
- Operating improvements that reduce operating costs, increase energy efficiency, and improve sustainability
- Redevelopment and select development when appropriate based on market conditions
- Transaction sourcing and structuring that build upon Mintblack’s relationships and experience deploying efficient legal, tax, and ownership structures
- Moderate leverage and rate-protected financing for the underwritten hold period are preferred.
Consideration of Exit
- Exit timing must be continuously reassessed based on economic and local market conditions and the strength of prospective buyer demand.