Case Studies : San Diego Courtyard San Diego, CA

Amstar executed an adaptive re-use strategy to create a unique-hotel development.
The property was an old bank building, circa 1927, with just nine tenants occupying 5 percent of the space - a clear case of under-utilization. Sage Hospitality Resources and Amstar saw potential on the investment. Amstar funded the up-front equity, guaranteed the debt, kept the design and construction partners on track and on task and negotiated a highly advantageous tax credit. In short order, Amstar and Sage created a stunning hotel with 227 rooms, 17 suites and a signature penthouse.
The project rapidly became one of several catalysts in the area for the economic revitalization of downtown San Diego's Gaslight district. Plaudits from local design professionals and the state came quickly, along with a listing in the National Register of Historic Places. The project reached stable occupancy within six months of opening.

Case Studies : 1One East Pratt Street Baltimore, MD

 Assessing and accounting for the range of possible outcomes is a crucial part of Amstar's underwriting process.
This investment represented a unique opportunity to purchase a fully-occupied "B" office building in an A+ location through an off-market transaction motivated by estate planning needs. Located within the inner Harbour of Baltimore's CBD, the asset had tremendous re-development potential as a premier office location. The Property was also encumbered by a challenging tenant purchase option at a fixed price. Amstar purchased the asset at $68 psf, representing an 80% discount to replacement cost and reflective of the potential impact of the tenant purchase option.
When the tenant exercised its purchase option for the property to the surprise of the market, Amstar had to put its re-development plans on hold while executing on a business plan that had been contemplated at acquisition.

Case Studies : Independence Plaza Denver, CO

Amstar acquired this asset during 1993 at an attractive basis owing to a soft market and a capital constrained seller that was unable to complete significant deferred maintenance. After updating and repositioning this well-located office property, Amstar implemented an aggressive leasing strategy and filled much of the vacancy in a challenged market.
During 2004, Amstar sold to an institutional investor a promoted 84 percent interest in the asset and maintained full asset management responsibility. After increasing property occupancy to 98 percent, Amstar and its institutional partner took advantage of the demand for investment-quality assets in Denver and the willingness of investors to underwrite aggressive rental rate growth and sold the asset during 2007.

Case Studies : Esperson Houston, TX

Amstar acquired this fully renovated and 75 percent leased asset at a time when many investors continued to view Houston as an over-supplied office market. With “hands-on” local management, Amstar conceived of and executed on a business plan tailored to delivering superior management services to retain and grow the existing tenant base. Additionally, we instituted a spec suite build-out program to enable faster absorption and respond to the abbreviated leasing windows afforded tenants as the CBD market spiked.
Three years into our ownership, Amstar and its client elected to sell the asset in response to an increased institutional investor interest in Houston office investments.

Case Studies : 3000 Sage Road Houston, TX

Market research, attention to detail and a well-chosen team earned awards for this multifamily development.
Houston's Galleria sub-market was about to boom. The mall was about to expand by 700,000 square feet and add two strong new anchors. Also under construction was 23 million square feet of office space. Amstar approached The Morgan Group, a Houston-based developer with extensive local experience and a strong track record.
Launching a joint venture, Amstar acquired a land parcel within walking distance of the mall and set out to create a centerpiece project: a community boasting an e-lounge, a conference center, world-class fitness facilities, spa and massage rooms and two pools, one of them a cardio pool. Individual apartments featured computer desks and studies, island kitchens and full-size washers and dryers.
Within one year, the project had commitments for 92 percent of the 324 units, along with nominations for a slew of industry awards. Demand was so high, marketing proved unnecessary, and Amstar and Morgan negotiated and closed the recapitalization with unsolicited investors.

Case Studies : 1425 New York Ave Washington, D.C.

Fast, decisive action and leveraging of local relationships allowed us to retain a vital tenant and upgrade this prime office property.

It was a property with great potential given its enviable address just two blocks from the White House. The challenge: a major tenant with near-term lease expiration. Thanks to strong relationships with local brokers, Amstar convinced the key tenant that we would manage and finance an extensive capital improvement program.

Four years later it was a showcase, Class-A, fully leased building. Among the tenants was the Department of Justice, whose new $100 million lease was among the largest transactions in the District that year.

Case Studies Overview

The Investment Strategy for Amstar is driven by the real estate operating experience that has been accumulated over two and a half decades. We believe that the acquisition is only the beginning of the story, and pursue opportunities where we can apply vision and experience in creating value at the property level. Amstar is not a passive holder of assets and we continuously look for ways to apply our operating skills through leasing, repositioning, redevelopment and when the market is attractive, new development. We are also very mindful of the importance of exit strategy toward achieving our overall investment objectives. We regularly assess the dynamics of the capital markets relative to the positioning of each property. A hallmark of our success has been a sincere focus on exit strategy and its impact toward achieving strong investment results.

The case studies within this section provide a summary of select transactions of Amstar. They illustrate what attracted us to the given opportunity in the first place and summarize the implementation of our investment strategy.

Portfolio Overview

Since its formation in 1987, Amstar has strategically diversified its portfolio across a variety of property sectors and geographic locations, including the four major regions of the U.S. and six different countries. Amstar continually assesses its investments to assure that the portfolio meets the diversification needs of its clients and that it is in line with Amstar’s overall investment strategy. Amstar’s track record and experience demonstrates the depth and breadth of the company’s investment history across asset classes and geographies.

Operational Strategy

  “Cradle to Grave” Operational Approach

Amstar utilizes one project team for all phases of a project life cycle. The professionals that underwrite a particular investment opportunity are the same professionals that manage the asset during its hold period and execute the exit strategy. This ensures a seamless transition between acquisition and operations and creates a unique on-going accountability for the professionals responsible for each particular investment.     
 

Intensive Asset Management
Our professionals demand the highest level of execution at each of our properties. Each asset management team develops, refines and executes specific asset strategies in order to manage risk, maximize performance, and enhance long-term values. Amstar prides itself on being proactive, decisive, and intuitive on all of its investments.
 
Nimble and Responsive
One of our primary competitive advantages is our ability to move quickly. We have a flat organizational structure that is reinforced by a team of seasoned and experienced real estate professionals that are committed to making quick decisions that are in the best interest of our clients.
 
Long-Term View
While Amstar is nimble and responsive, we view all of our investments with a long-term perspective. Our investment outlook embraces patience and persistence while demanding immediate accountability. We are steadfast in our commitments, we honor our obligations, and we always treat others with respect.
 
Opportunities to Apply Operating Expertise
Amstar looks for opportunities where it can add value to assets through its operating skills and expertise. This includes releasing, repositioning, restructuring the capitalization, development, or redevelopment.

Investment Strategy

Much of Amstar's success can be attributed to our core investment philosophy, which is to focus on real estate fundamentals and execute rigorously to produce superior risk-adjusted returns for our clients. Amstar is well positioned to respond quickly to investment opportunities, to exercise judgment as a disciplined real estate investor, and to drive value through the implementation of sound asset-level strategies. This strategy has served Amstar and its clients well for more than two decades, and it will continue to serve us well for many more decades to come.     
 
Identifying our Target Markets
Amstar typically targets markets with high barriers to entry in which it is more difficult or expensive for competitive supply to be developed. We prefer primary markets that appeal to institutional investors and offer greater exit liquidity. Emphasis is placed on markets that have broad, diverse economies and are dominated by industries with strong long-term growth prospects.
 
Identifying the Right Asset
While trophy assets are often in high demand, many times they do not deliver the highest risk-adjusted returns. Amstar is adept at identifying and acquiring exceptionally well located, institutional grade, underperforming assets in strong markets and locations with significant potential. Amstar identifies opportunities by understanding our target markets with a research-driven approach and by leveraging our existing relationships within those markets.
 
Rigorous Due Diligence and Downside Protection
Integrity and thoroughness during the due diligence process is of the utmost importance in ensuring a successful investment. Our professionals work in close collaboration with lawyers, environmental specialists and property engineers during the process and take great effort to leave no identified risk factors to chance prior to closing on an acquisition. Further, each potential investment is subjected to a “worst-case” analysis as part of the underwriting to identify all appropriate risk factors and the range of potential outcomes.

Amstar

Established in 1987, Amstar is a real estate investment manager that offers both commingled funds and tailored separate accounts to its international and domestic clients. With approximately $1.6 billion in assets under management, Amstar’s current portfolio consists primarily of office, hospitality, multifamily and retail holdings within the major markets of the United States and select markets in Europe and Latin America.

Amstar offers its clients stability, sound judgment and a long history of proven performance. Our team of highly capable employees understands that a hands-on dedication to real estate and commitment to our clients are the company's primary competitive advantage.