Starwood Capital Group

Through an industry contact, Flagship was introduced to Starwood Capital Group, one of the largest institutional real estate investors in the country with assets under management exceeding $60 billion. When Starwood decided to invest ­­in medical real estate, it called on Flagship to assist its efforts in the southeast formulating a bid to purchase an MOB portfolio exceeding $825 million.

We performed cash flow projections, identified and analyzed sales and leasing comps, generated capital spending and replacement cost estimates, modeled operating expense projections, coordinated property tours, and conducted market studies. Particularly helpful to Starwood was the development of a SWOT analysis of each portfolio property and providing an overall understanding of the medical office sector. We revealed six properties with risks that exceeded Starwood’s underwriting standards, resulting in their removal from the portfolio bid.

Upon winning the bid, Starwood selected Flagship to provide property and asset management services for its Southeast U.S. medical real estate assets. Our responsibilities include property management and leasing oversight, property accounting, tenant improvement capital spending management and identifying creative ways to maximize the cash flows and values of each property. For example, through our efforts and supported by local brokers, we successfully leased space beyond one of the property’s static vacancy assumption, thereby creating additional value.