Monday Properties To Expand In Core Markets
Monday Properties wants to expand in the Washington, D.C., metro area and New York and plans on making acquisitions the old-fashioned way.
"We are going to be buying real estate with equity, underwrite current cash flow, and underwrite future perceived cash flow," said Anthony Westreich, president and ceo.
The New York-based value-added firm sees opportunity arising from the dislocation in the debt markets, seeking investments with strong fundamentals. Westreich declined to quantify the firm’s investment pace, noting that in the current market it is hard to project, but added that the firm has never been a momentum buyer.
This is the most difficult market that Westreich has ever seen. "The leasing market is challenging, the debt markets have been completely frozen and the sales market has basically come to a dead stop. This is arguably the worst bear market that we’ve seen in decades," he said. "For the past several years...people haven’t been putting enough equity in deals."
Monday Properties focuses mainly on New York and Washington given their historical resiliency. It particularly likes the supply-constrained market inside the Washington, D.C., beltway. The firm usually holds onto its properties as a generational owner and uses leverage of 60% to 70% on its acquisitions. "We buy real estate where there is a story and where there is work to be done to create value for it," Westreich said.
Monday Properties’ buildings include the Helmsley Building at 230 Park Avenue and 1440 Broadway in New York. As part of its work, the firm achieves green certification on its buildings. One of its developments—a 580,000-square-foot office tower in Rosslyn, Va., is expected to receive LEED Platinum certification—a first for the state.
More stories from Real estate finance and investment