Our Approach
The Lightstone Group is unique in the real estate industry, partnering closely with our investors. We seek superior risk-adjusted returns, believing that portfolio diversification, a thorough and strategic investment process and hands-on asset management will produce outstanding results.
Lightstone Group owns one of the most diversified real estate portfolios in the industry. We are continually seeking new acquisitions throughout the country in both urban and suburban locations and across a wide range of property types, including industrial, office, retail, multifamily and hospitality. Through diversification, in part, we strive to mitigate risk and capitalize on value-creation opportunities that arise due to changing market and economic conditions.
Value-Add Strategy
The continued growth and success of the Lightstone Group is attributable to our unique business strategy. Although we continue to place a premium on preserving and protecting capital through the minimization of risk, we avoid the easy pathway of limited risk, limited reward. Rather, we aggressively seek out diamonds in the rough in the form of “value” properties that offer the prospect of high returns and have challenges or complexities that limit their appeal to other investors, particularly those with distressed capital structures. Our extensive track record in acquiring value-add properties has contributed to our reputation for being able to close any type of transaction in a timely manner. In short, we are able to effectively marshal the resources to quickly complete transactions regardless of property location, product type or complexity and inherent challenges.
Flexible Approach To Deal-Making
The Lightstone Group's experience and broad industry relationships provide us with access to a wide range of capital sources. We have the flexibility to participate in a deal at all levels of the capital structure, from equity to preferred equity to debt. Although we consider ourselves to be highly creative at structuring transactions, we also believe that the best deals -- although they may be difficult in some respects -- are often the simplest in terms of their structure.
Hands-On Approach
The Lightstone Group's investment strategy, however, goes well beyond the deal. As a result of our knowledge, skill and experience, we have the ability not only to spot the hidden value in a challenged property, but also the ability to unlock that value by unraveling problems, improving operations and prudently investing capital. Simply put, we have the expertise and ability to execute.
We believe an investor should take a hands-on approach to asset management. Our asset management team -- all employees of the Lightstone Group -- has the ability to manage an investment throughout its entire lifecycle. Prior to acquisition, the team is engaged in validating a deal's investment thesis and conducting due diligence. The team then develops and implements a sound operating strategy for each property and is continually examining disposition strategies in order to maximize an investment's overall return. The team also oversees the day-to-day property management and leasing functions and is ultimately responsible for resolving operating issues and for oversight of capital improvement projects. Our philosophy in this regard is simple: while we are not always able to control revenues due to economic circumstances, we can control expenses and make prudent capital investment decisions; and no one can do this better than employees with direct responsibility for the bottom line. |