Investment Strategies


One of the most frequently used market strategies employed by the Manager involves re-thinking the current marketing and operational strategy for a particular asset. Due to a number of factors (lack of capital, long-term ownership, loss of motivation) opportunities exist to affordably re-position a property to its proper standing within its sub-market. This strategy takes a skilled management approach, and has a long-term focus. Oakmont Real Estate Management, LLC will seek out these opportunities, and be competitive in their underwriting during the acquisition process.

Acquisition from Institutional Owners

As institutional investors have definitive timelines and holding periods for a particular asset, their investment strategy creates opportunities for smaller, entrepreneurial investors. In many cases, these assets have carried higher than market operating expenses or fees, and the property's cash flow has been significantly reduced. Through effective underwriting and intense management of the operating expenses, the Management Team will be able to create value and increase financial yield to the investor.

Mid-to-Long Term Investments

In some cases, repositioning an asset within a sub-market may take a somewhat longer timeframe due to the length of existing leases or the process of moving operating expenses from the owner's side to the tenant's side of the equation. Also, the new construction of a project may take up to 24 months to complete. In these instances, the timeline from acquisition to stabilization may take significantly longer. However, the Management Team will expect higher future yields to make up for the longer construction/stabilization period. These projects will be considered on a limited basis, and they must exist within a very strong market demographic.

Smaller Transactions

The size of today's institutional investor, pension funds and REITs dictates that below a certain size, it is not cost effective for these entities to entertain some types of transactions. Smaller properties are less efficient to manage, and are too difficult for the larger entities to underwrite. The Management Team has seen that the competition for acquiring these smaller assets is diminished, and they tend to sell at higher cap rates which create higher yields to the investor.

Relationship Development

In every case, the Management Team will only entertain doing business with reputable firms with significant positive track records in the commercial real estate industry. With over two decades of experience in the field, the Management Team has developed a number of positive relationships that are sources for deal flow and competitive financing rates and terms.