Sterling American Property closes 4th fund.Following upon the success of its first three real estate investment funds Noun 1. investment funds - money that is invested with an expectation of profit investment assets - anything of material value or usefulness that is owned by a person or company , which invested more than $2.2 billion in 43 states nationwide, Sterling American Property Inc., announced that it has successfully closed its fourth fund, Sterling American Property IV - LP. In addition to raising close to $300 million of equity, well exceeding its $225 million capitalization target, the fund has co-investment commitments that provide an additional $100 million of available capital. This brings The fund's total purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. to approximately $1.3 billion, based on an average 70% fixed, non-recourse debt Non-Recourse Debt A loan that is secured by some sort of collateral, usually property. The issuer can seize the collateral if the borrower defaults. Notes: These types of projects are characterized by high capital expenditures, long loan periods, and uncertain revenue to total capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. ratio. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Tarak Patolia, senior v. p. and head of acquisitions & dispositions, "Sterling American plans to invest in office and multifamily assets with value potential throughout the U.S." Sterling American Property IV 's first transaction was the $30 million, December '02 acquisition of the 300,000-SF, 16-story First Union Tower in downtown Orlando Downtown Orlando, Florida is far removed from the famous attractions that draw tourists to the region. There are several areas of downtown Orlando:
Sterling American Property generates deal flow through their extensive network established over four decades in the real estate industry as well as through Sterling's regional offices and its relationships with local operators and minority joint venture partners. Regional investment partners will share in the operation and management of the assets during the projected 3 to 7-year hold period. Patolia said, "Our founders, Fred Wilpon and Saul Katz, established a philosophy and discipline of investing which has been reinforced by the Fund's senior management team, Michael Katz, Richard Wilpon and Tom Osterman. This focus on preservation of capital Preservation of Capital An investment strategy whose primary goal is to prevent the loss of an investment's total value. Notes: For investors using the capital preservation strategy to achieve their goal, they must ensure their portfolio is producing a return that is at , through creation of value while managing risk, has since 1991 consistently produced superior returns for our investors. Over the course of our prior funds' 13 years of active operations, not a single asset has been unprofitable." Sterling American pursues a broad spectrum of investment opportunities. For example, its funds have purchased portfolios in excess of $400 million, as well as single assets under $5 million. By focusing, however, on transactions of $10 to $25 million, Sterling American has successfully cultivated a market segment that is beyond the reach of many local investors, and not actively pursued by larger institutional buyers. |
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