We pursue a broad array of opportunities that are expected to generate current income, capital appreciation or a balance of the two. WealthStone intends to acquire and develop both for-lease for for-sale residential properties including multi-family, senior living, and student housing; office buildings, retail centers; industrial properties; hotels and self-storage. We seek to acquire assets that are located in markets that exhibit attractive demographics and fundamentals, and which are anticipated to generate a current or near-term cash flow component.

When considering the fundamentals of a real estate project, our team looks at several key factors and asks:

• Is this property priced below comparable sales prices in the market or below the replacement cost of the building?
• Are the risks inherent to the operation of commercial real estate (loss of occupancy, need for capital, maintenance, etc.) well mitigated by the circumstances with respect to a specific property?
• How do these risks and expected returns stack up to other available opportunities?

Our approach is consistent. WealthStone’s underwriting focuses on preservation of capital, even with projects that have a projected substantial upside. We concentrate on metrics that are less skewed using financing such as unlevered cash flow yields and comparable sales. If financing is needed to acquire a property, conservative leverage is considered. Target acquisitions generally will range from $5 million to $40 million of equity capital and $10 million to over $100 million of total capitalization per project. We see larger projects as an opportunity to joint-venture with sophisticated and experienced global partners.

WealthStone believes in flexible joint venture arrangements that allow us to uncover value in real estate assets while ensuring an alignment of interests with our partners.