Capstone Investment Group, LLC (“Capstone”) is an impact investment firm with a mission of doing deals that make a difference in two key areas:
- Our Investors: Doing deals that make a difference for our investors.
- Our Society: Doing deals that make a difference for our society.
Capstone specializes in affordable housing opportunities that have multi-units/multi-tenants. More specifically, Capstone acquires apartment buildings and manufactured housing communities (MHCs) for investment purposes. Capstone focuses on affordable housing because these properties produce great cash flow and there is tremendous demand for this type of housing – in both good and challenging economic times.
Capstone offers high-net-worth individual investors, family offices and other institutional investors, direct access to these high-yield and high-return investments. Capstone typcially syndicates each deal separately so investors can select which deals suit their investment objectives.
Investors: Capstone provides investors with real estate investment opportunities that provide compelling high-yield and high-returns, especially on a risk-adjusted basis. Capstone’s deals also provide portfolio diversification versus more traditional investments, such as stocks or bonds. Investor returns can consist of a variety of components, such as: 1) preferred return; 2) incremental cash flow above preferred return; 3) equity creation on back-end sale; and 4) depreciation/tax shield benefits. In addition to cash, self-directed IRAs can be utilized as investment vehicles.
Investment Thesis: Capstone seeks to acquire properties that are profitable, yet under-performing and have value-creation potential through operational improvements and customized financing activities. Before acquiring any given property, Capstone has a specific strategy in order to create value over the project duration. After ownership, Capstone focuses on executing the operational and investment strategy in order to actualize this value and achieve investor returns.
Owners/Sellers: Capstone has a flexible investment style and therefore can work collaboratively and creatively with owners to customize a deal structure that best meets their needs. Numerous seller objectives can be addressed, including but not limited to, liquidity (cash proceeds received upfront), minimizing taxes, exit planning, creating an income stream through seller financing, funding for capital expenditures or working capital, property management, estate planning, operational assistance and other related objectives.