Portfolio Criteria

Portfolio Criteria

 
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Rok seeks to build a diversified assortment of properties and assets in strategic locations across the United States. The company invests in properties that generate income and yield appropriate risk-adjusted returns with correspondingly low volatility, adequate liquidity, and low correlation to broad market indices.

We are guided by a disciplined investment philosophy and process. Our goal is to source, evaluate, and invest in select income-generating multifamily and commercial real estate properties that are overlooked by less experienced and less opportunistic investors, or that are too large and complex for investors with insufficient resources and infrastructure. We are also engaged in ground-up development, including a residential apartment complex in Boca Raton, as well as the redevelopment of distressed properties or select historic landmark properties.

We utilize advanced risk management techniques and portfolio modeling capabilities to professionally underwrite its acquisitions. We make investments that capitalize on market inefficiencies by opportunistically acquiring undervalued property and/or distressed loans; we seek to maximize recoveries by utilizing long-standing banking, institutional, and governmental relationships. Capital preservation and risk management are the primary objectives of the management team. We are vertically integrated and have the extensive resources and infrastructure required to source, analyze, value, purchase, service, manage and dispose of real estate properties and assets, or retain acquisitions when warranted.

We provide the potential for value-added returns based on strong, disciplined real estate management, leasing, and marketing. Our team has unsurpassed expertise in creating and implementing a management approach that will successfully invigorate the income streams and value of individual portfolio investments. The management plan is designed prior to completion of an acquisition so that it can be immediately executed upon closing. Depending on the location and property type, management may be delegated to a third-party, handled directly, or kept in place through an arrangement with the existing staff. Due to the critical nature of management in achieving value-added returns, we maintain tight supervision over every aspect of property management and operations.

 
Geographic Focus

Geographic Focus

 

GEOGRAPHIC DIVERSIFICATION

We are seeking real estate investments located throughout the United States. Specifically, we are pursuing acquisitions in the Southeast, West, and Southwest and in select markets located in the Midwest and Northeast.

TARGETED MARKETS

  • South-Florida Tri-County Area ($1M – $120M)
  • Outside South Florida ($3M – $120M)
  • Primary and Secondary Markets in the Southeast, West, and Southwest
  • Select Markets in the Midwest and Northeast
 
Acquisitions Criteria

Acquisitions Criteria

 

We are seeking to acquire income-producing commercial real estate properties. We look for well located assets in high-barrier-to-entry locations. As a well-capitalized private company, with many years of experience and a strong track record for closing the most complex deals, we have the ability to underwrite the most sophisticated transactions and move quickly on them.

We target multi-family and commercial real estate that has been developed in the last 15 years. We may consider properties over 15 years old that have been well maintained and/or have had substantial renovations in the last five years affecting structural and support systems, as well as cosmetic renovations. Additionally, we may pursue multi-family and commercial development opportunities, including the development of vacant land. Below is a general summary of the type of opportunities we are interested in pursuing:

Property Selection

ASSESSMENT AND EVALUATION

Investments are selected based on asset class, loan analysis, diversity and correlations.

  • Risk Assessment: A stress test of individual properties and/or assets based on simulation analysis involving market scenarios, market absorption, credit spreads, interest rates, etc.
  • On-going Monitoring: Continuous evaluation of properties and/or assets in terms of risk exposures, investment strategies, and scenario analysis in the context of the current market performance versus observed market conditions.
  • Exit Scenario Evaluation: On-going evaluation of all possible options including sale, refinance, or other strategies, taking into account timing, local and national market factors, asset class performance, and liquidity trends.

Targeted Transactions

$1 MILLION TO $150+ MILLION

We seek to invest in real property and real estate loans. Proof of funds and references are available upon request.

  • REO Investments
  • Equity Investment
  • Market Rate Investments
  • Performing Loans
  • Nonperforming Loans
  • Will Consider Joint Ventures

Property Types

COMMERCIAL/ INCOME-PRODUCING

Generally, we seek properties within the following classifications:

  • Retail (Power Centers, Neighborhood Community Centers, and Strip Centers)
  • Multi-Family Apartment Complexes
  • Self-Storage Facilities (30,000+ sf throughout East Coast)
  • Office Buildings
  • Mobile Home Parks (South Florida Region)
  • Marinas (South Florida Region)
  • Waterfront Single-Family Homes (South Florida Region)
  • Industrial/Warehouse/Flex(South Florida Region)
  • Vacant Land For Development
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Investment Approach

Investment Approach

 

We conduct rigorous quantitative, statistical, and qualitative analyses of possible investments utilizing customized models and systems. The few properties and/or assets that survive the initial process are targeted for further, more precise investigation. The ultimate goal of the process is to provide a portfolio of superior properties and/or assets which is diversified across property types and class, and geographic market. We follow a logical path to ensure sound investments, including sourcing, property review, core due diligence, investment approval, and post-investment refinements and updates.

Sourcing

We utilize strong, industry-wide relationships with local, regional, and national lenders, institutional providers, and governmental agencies.

We also call upon a vast, nationwide network of brokerage and advisory relationships, as well as research databases, proprietary industry lists, industry journals, and public records.

Property Review

Prior to an acquisition, potential investments undergo an initial review process, which may include property visits, market and comparable property analyses, historic performance review, and loan re-underwriting assessments.

The review phase is used to develop a deep understanding of the real estate and/or loans, as well as all pertinent legal documentation.

Core Due Diligence

Once we have determined that a potential investment meets our acquisitions criteria, we then subject it to rigorous core due diligence. Our broad experience in the real estate sector enables us to rapidly accomplish the necessary steps involved in core due diligence and thereby allows us to close quickly on the most complex transactions.

Our core due diligence process generally includes:

  1. Review of the property and/or asset data, including financial, local, legal, and market information
  2. Stress testing and scenario analyses appropriate for risk management
  3. Title searches and documentation
  4. Third-party valuations
  5. Property inspections, including detailed physical, environmental, and engineering reports as needed
  6. Reviews of the local economy and demographics, neighborhood economics and trends, qualitative and quantitative analyses of market competition, area rates, vacancies and market position.

Post-Investment Review

Following acquisition, investments are subject to monthly surveillance and reports with an on-going comparison of results to objectives and updating of the portfolio correlation analysis and the market/comparables analysis. A continuous post-investment review process monitors risk and adherence to risk limits and guidelines. Value enhancements are considered and reviewed throughout ownership. Exit scenarios are also monitored. On-going review enables us to respond as needed to market and financial realities and opportunities to enhance and maximize returns.

Investment Approval

An acquisition requires team review and approval,  which is conducted according to a formal investment committee process. A majority approval of the acquisition team is required in order to invest in any real estate or real estate-related asset.

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