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Investment Strategy

Investment Strategy

  • Invest in urban and “sub-urban” markets
  • Target assets in need of repositioning or renovation at discounts to replacement cost
  • Utilize deep local expertise and networks to identify opportunities

Investment Process

  • Identify: Well-located, functional assets with the following characteristics:
    • Located in primary and secondary infill markets with anticipated near term rent growth
    • Submarkets that have definable and measurable supply and demand characteristics
    • Significant portion of return generated via current cash flow
    • Attractive seller circumstances/distressed sellers
    • Opportunities to purchase properties at a significant discount to replacement cost
    • Attractiveness to future buyers, current/future lenders
  • Execute: Parmenter combines identification with a proactive management and operating strategy that includes the following:
    • Developing, maintaining and capitalizing on strong leasing broker relationships
    • Implementing cosmetic and cost effective improvements to exteriors and common areas including “market ready” vacant suites
    • Continually pushing rents to maximize near term net operating income and property value
    • Retaining tenants and avoiding rent reductions through superior property management
    • Tracking leasing and economic activity in submarkets and regions to estimate current rents and project anticipated rent growth
    • Tracking capital market activity and regularly valuing investments to determine optimal disposition strategy and timing
    • Closely monitoring major leases and debt maturities to anticipate and prepare for potential problems
    • Cultivate deep and strong relationships with the tenant rep community to build loyalty and enhance leasing velocity
  • Optimize Value: At each major project milestone (major lease, capital improvement etc.) a hold/sell analysis is conducted to determine if an asset should be sold or held for further value creation

Investment Approach

Parmenter’s investment approach has been demonstrated over the past 25 years by the funds in which it has sponsored. Such funds have primarily acquired distressed and value-oriented office buildings located in infill submarkets within the Southern half of the United States (excluding California).

More specifically, the investment approach consists of the following:

  • Use network of real estate professionals and its extensively researched target asset list to identify attractive acquisition opportunities;

  • Use acquisition and due diligence skills to acquire properties at significant discounts to replacement cost;

  • Parmenter professionals – including professionals from the asset management, property management and legal, finance and accounting teams -formulate a comprehensive plan for the transformation of the asset;

  • Use development skills to physically enhance the property and reposition it to compete successfully for tenants in the sub-market;

  • Once renovations are complete, our hands-on property management professionals implements a comprehensive plan to create operating efficiencies (including sustainability initiatives) and reduce expenses, at each property;

  • Parmenter seeks to aggressively lease the newly transformed property to stabilization; and

  • Parmenter seeks to sell the asset to a Core or Core-plus institutional-grade buyer.

Investment Characteristics

Key characteristics Parmenter evaluates in depth when considering investment property:

  • Access and Mobility

  • Amenitization

  • Data Driven

  • Environment & Systems

  • Location

  • Mixed-use emphasis

  • Proximity to high-growth industries

  • Regional and local talent pools