Sterling’s investment strategy is centered on acquiring assets with the opportunity for “value enhancement” through improved management, leasing, marketing and repositioning. Generally, these properties exhibit one or more of the following characteristics:
- The asset’s position in the marketplace has not been maximized
- Restrictive or insufficient capital structure
- Current use is not its highest or best
- Structure of current ownership is no longer optimal
- Lack of aggressive management of the tenant/leasing base
Frequently, investments are pursued in conjunction with local operating partners who are experts in their respective markets and bring solid market knowledge, strong functional expertise and property level asset management services to the transaction. Once an asset has been identified, Sterling works closely with these local operating partners to structure and execute a value enhancement program that typically includes a combination of capital restructuring, strategic capital improvements, proactive leasing, expense reduction and asset repositioning. Generally, these operating partners also invest side-by-side with Sterling.
Sterling is adept at evaluating and closing investments on an accelerated time frame to meet the objectives of sellers, partners and lenders. Given its ready access to discretionary capital, Sterling can close transactions quickly.
Sterling benefits from an expansive network of local operating partners and asset managers and is constantly seeking to expand this network. Sterling’s access to discretionary capital and ability to move quickly and reliability provides credibility in the marketplace.