Monro Capital seeks to enhance the long term value of well located real estate. This value creation may come in many forms but ideally entails taking underutilized assets and improving them through capital improvements, entitling, financing, marketing and/or building conversions. The core competencies of our investment approach are the following:
1) Improving cash flows through increasing occupancy and rental rates;
2) Seeking uses for well-located underperforming assets;
3) Leveraging key relationships to fully understand market conditions;
4) Seeking downside protection; and
5) Using varied amounts of leverage and debt amortization depending on asset type, stabilization, market conditions and interest rates.
Our prerequisite underwriting criteria answers the following question: “Is the asset as renovated, repositioned or in its current state worthy of being a long term hold?” If the answer is “no,” the property will probably not be an acquisition candidate. Although Monro Capital may dispose of assets, our objective is not to flip marginal properties. The objective is to acquire assets that become better over time.