LOS ANGELES, March 7, 2023 /PRNewswire/ — WealthStone LLC, a leading private equity real estate organization targeting income-producing assets, has announced an update to its investment strategy in response to the current high-interest rate environment.
As interest rates, debt costs, and the potential for slower economic growth continue to impact commercial real estate transaction volumes, WealthStone LLC remains active in identifying undervalued properties and singular opportunities, with a particular focus on multifamily, industrial, and hospitality assets that have strong inherent value.
“While rising interest rates present challenges for the commercial real estate market, they also create opportunities for experienced investors,” said Jean Paul Szita, Managing Director for WealthStone LLC. “Our revised investment strategy is designed to take advantage of these opportunities by introducing additional flexibility while keeping a laser focus on quantifiable, intrinsic property value and attributes. This allows us to provide measurable, superior risk-reward returns for our partners. After several years of converging yields, particularly between core/core-plus and value-add product, risk is currently being repriced, and we believe our approach positions us well for success.”
The pandemic has also had a lasting impact on the commercial real estate market, with changes in the way people conduct business, live, and shop likely to be permanent. WealthStone LLC’s revised investment strategy takes these changes into account and aims to position the organization for success in the evolving market.
Investing directly in commercial real estate allows for greater control over an asset, providing more flexibility and customization than investing in a commingled fund. Investors can tailor their allocations to their specific goals and risk tolerance, which can lead to higher returns as well as greater control than investing in a blind pool fund.
Sophisticated investors recognize that tactically investing has historically provided benefits in terms of higher risk-adjusted total returns. Today, those who choose to step out of the sidelines can benefit from a buyer’s market.
WealthStone LLC pursues a broad array of investment opportunities that meet the needs of domestic and international partners, whether they are seeking current income, capital appreciation, or a combination of the two.
With over 20 years of management legacy expertise, the organization creates partnerships focusing on traditional multifamily, including specialized residential properties such as senior living and student housing, industrial properties, hotels, as well as office buildings that have a strong underlying rationale.
The firm’s focus is on assets in metropolitan areas with a population of at least one million. Typical acquisitions require between $20 million to $150 million in total capitalization per project, including prudent leverage.
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This press release does not constitute an offer to sell, or a solicitation of any offer to buy any securities or investment advice, nor is it intended to be a description of all material factors an investor should consider before making any investment. This press release, together with other statements and information publicly disseminated by the Company, may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Except as otherwise required by the federal securities laws, the Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements.
SOURCE Wealthstone LLC