Who We Are
Our Approach
We live in a world of shifting market cycles. Interest rates and access to capital markets ebb and flow, creating an investment climate of constant uncertainty. With this in mind, Red Street strongly believes that a consistent, risk adjusted approach to investing regardless of external factors is the optimal way to maximize returns while limiting downside risk. The key factors to our investment approach are conservative underwriting, thorough due diligence, and prudent use of leverage.
We believe that price should be determined by a realistic estimate of an asset’s future cash flows. Through carefully analyzing a property’s operational history and sub-market performance, we strive to create reliable cash-flow projections. We employ our management knowledge & experience to identify comprehensive operational inefficiencies that lead to an asset’s dislocation in value. Additionally, we utilize our relationships in the construction sector when evaluating a property’s physical condition, minimizing the risk of unforeseen, costly repairs. We couple this with in-depth qualitative analysis to paint a complete picture of an asset’s potential
Quality management is the most critical component of an asset’s long-term success. For this reason, we employ an engaged, hands-on approach at the operational level. Our experienced, in-house management team has a proven track record of success and value creation across multiple market cycles. We accomplish this by recruiting & properly incentivizing the most talented individuals in the market place, constantly exploring new avenues to create additional revenue while maintaining expense efficiencies, providing exceptional customer service, and promoting community.
We are firm believers that caution should be used when employing leverage to the assets we own. Sensitivity analysis is conducted on each property to determine the appropriate level and structure of debt to protect its long-term value and the interest of investors. We view investments through a long-term lens and market-cycle timing is unknown, so we do not want to use leverage in a way that will put an investment in undue risk before the value of an asset can be realized.
