• Invest in a property with projected annual tenant rent growth
• Invest in a community with a growing population and jobs
• Professionally managed by experienced sponsor principals
• Diagonal Marketplace benefits from its location in the center of the Longmont Retail Corridor
• Annual rent increases in 8 of 11 tenant leases representing 73% of tenants
• 66% Credit and National Chain tenants including Fed Ex/Kinkos, Starbucks, GNC, Chipotle Restaurant, Safeway (for CAM)
DELAWARE STATUTORY TRUST (“DST”) INVESTMENT STRATEGY
Starboard has a unique investment strategy for DST’s to respond to investor objectives and the changing real estate cycle fundamentals that will impact investor returns in the future.
Historically, a ½ of 1% increase in the 10 Year Treasury Bill will generally cause a 1% increase in cap rates. Since 2008, real estate values have increased largely through cap rate compression, while many asset classes were not performing well.
Going forward, value will be created through property performance, revenue growth and increasing the net operating income (“NOI”). It is likely that NOI growth will be needed to offset the rising cap rates resulting from higher interest rates.
Starboard’s DST strategy is to acquire multi-tenant retail shopping centers in primary and secondary markets which historically have three to ten year lease terms and annual rent increases in the tenant leases. The DST will not own the anchor because it usually represents 40-60% of the centers’ income.
When an anchor owns its own store, it is more committed to the location and will invest more capital in the store than if it was leased. This acquisition strategy is preferred by Starboard to single or portfolio net lease properties because as market rents increase during the current real estate cycle, tenants can be renewed or replaced at the higher rents.