Stonemar focuses on transactions in the $10 to $75 million range, thereby sourcing and exploiting opportunities often overlooked by larger institutional investors. The firm’s disciplined approach to deal-making focuses on value creation and capital preservation, emphasizing the ownership of real estate with quality tenants and superior locations to create a margin of safety for its committed equity.

Core/Value-add Strategy

Stonemar’s current investment platform, Stonemar Growth and Income Investors, acquires well-located, institutional-quality core and value-add office, retail, and multi-use properties, including triple-net leased assets, in leading secondary markets throughout the United States. The firm invests in properties with the following characteristics:

• Well-located in liquid markets with institutional real estate ownership
• High-quality, heavily-invested tenants occupying mission-critical space
• Limited near-term lease rollover
• Manageable near-term deferred capital expenditures
• Opportunistic repositioning and/or redevelopment
• Strong demographics (population growth, stable/rising employment, above average household income)

Based on Stonemar’s experience of investing and managing real estate in expanding secondary locations during the last 10 years, the firm believes strongly that a significant pricing gap exists between primary and secondary markets, especially for well-located, high-quality assets. As the economy strengthens, business expands, and investor demand increases, Stonemar is confident this pricing gap will shrink, unlocking significant value for its investment. Further performance will be achieved and risks mitigated by leveraging Stonemar’s hands-on operational expertise and its strong focus on customer service and tenant relationships.

SGII is a basis and a yield-driven investor; its investments are structured to generate superior risk-adjusted returns and to minimize taxable income, when possible, while providing the following:

• Wealth preservation
• A strong current yield
• An above-market return on investment
• Long-term capital appreciation
• A hedge against inflation
• Good diversification across asset type and geographies

Opportunistic Strategy

Stonemar also pursues opportunistic investments in any asset class that involve the following:

• Distressed debt
• Broken partnerships
• Restructurings
• Recapitalizations
• Rescue equity for troubled sponsors