Overview
Investment PrinciplesInvestment Principles
When selecting and managing investments, Beacon focuses on the following key factors:
High Quality, Unique Properties
Unique properties tend to maintain their value better than commodity-like properties in difficult times and garner premiums in competitive times
Discount to Replacement Cost
Acquiring properties in supply-constrained markets at a discount increases return potential
Opportunities for Adding Value
- Repositioning and strategic capital improvements to enhance or reinforce the property's desirability to tenants within the market
- Active leasing of vacant and rollover space to credit tenants at market-leading rental rates and terms
- Operating improvements that reduce operating costs, increase energy efficiency, and improve sustainability
- Redevelopment and select development when appropriate given market conditions
- Transaction sourcing and structuring that build upon Beacon's relationships and experience deploying efficient legal, tax, and ownership structures
Prudent Financing
Use of moderate leverage and a preference for rate-protected financing for the underwritten hold period
Consideration of Exit
Continuous reassessment of the exit timing based on asset performance, economic and local market conditions, and the strength of prospective buyer demand