Office Investment Strategy
The motivation of office sellers has begun to increase in the current environment as cash flows and loan coverage erode, and/or debt maturities loom. This motivation is expected to further increase over the coming one-to-two years as the volume of maturing loans grows dramatically. These factors, combined with a return of capital to real estate investment as well as steadily improving debt markets, have continued to narrow the gap in pricing between buyers and sellers.
Value growth in the next cycle will be achieved the “old-fashioned way” – by growing NOI via rent and occupancy gains along with effective management of expenses and creative leasing strategies. Management teams that can effectively execute such asset-level strategies will create significant value for their investors.
M-M Properties’ office investment strategy is focused on the opportunistic investment in core-plus properties and value-add acquisitions of high quality, well located, real estate assets in selected growth markets. To this end, M-M Properties will focus on opportunities that represent: (i) transitional or distressed situations; capital or repositioning challenges; (iii) assets below replacement cost; and/or (iv) market recovery opportunities.
M-M Properties, whose team members have a demonstrated record of success in creating value in office investment and development, will leverage its broad experience and deep relationships to effectively execute this strategy.