Pacific Star Capital has pursued a variety of investment strategies to capitalize on changing opportunities. Pacific Star has utilized its extensive experience with the capital markets to create the optimal financing structure and to marry that structure with the appropriate investment opportunity. Pacific Star has applied this discipline towards identifying investment opportunities in anchored-retail in primary and secondary markets and well-tenanted office properties in primary markets. Pacific Star has also been involved in the development of office and retail malls and currently is developing mixed-use residential resorts in Kona, Hawaii and Manzanillo, Mexico.
The common thread running through these strategies has been taking a "hands-on" approach to all aspects of an investment from due diligence to leasing and sale. Pacific Star's acquisition team is charged with the responsibility of identifying and closing investments, and its asset management team is charged with the responsibility of maximizing the value of those investments to the fullest extent possible through strong leasing programs and expense. Lastly, Pacific Star's capital markets expertise enables it to employ a variety of value-added structures to achieve enhanced returns through interest rate hedging strategies as well as disposition strategies that capitalize on tax-deferred disposition strategies.
With income producing properties, Pacific Star typically seeks core-plus investments that offer downside protection to its investors, while providing an opportunity for above average returns through aggressive re-tenanting, land planning, and creative financing strategies. Pacific Star typically looks for assets in the $15,000,000 to $70,000,000 range and acquires income-producing assets utilizing 75% to 80% leverage. Pacific Star seeks assets that can produce cash yields in the 12% to 20% range and will adjust its leverage accordingly, based on interest rate fluctuations and cap rates.