Realstar has substantial balance sheet resources and invests founder capital in its assets.
Joint ventures form an important element of Realstar’s success. Realstar often enters joint ventures with both large financial investors such as pension funds, endowments and family offices or strategic operating partners who require additional capital and/or expertise to complete a transaction.
In addition to its own corporate balance sheet and traditional joint ventures, Realstar also operates several discretionary co-mingled investment partnerships as well as single-partner co-investment structures.
Realstar Apartment Partnership I, II, III & IV
Realstar Apartment Partnership is a series of investment vehicles in which the principals have partnered with a small group of Canadian pension funds and select HNWs to acquire high-quality, mulit-residential properties across Canada on a long-term ‘evergreen’ basis. The portfolio locations range from Victoria, British Columbia on the west coast to Halifax, Nova Scotia in the east and major markets in between. The partnership focusses on both existing as well as new build, forward purchase assets.
Manufactured Housing Partnership I, II & III
Realstar partnered with a major Canadian financial institution in fund I to acquire over 2,000 ‘pads’. It continued to acquire an additional 3,000 pads in funds II and III. At present, Realstar continues to acquire additional units on a property-by-property basis to be held for the long-term.
Realstar European Capital I, II, III & IV
Realstar European Capital I (‘RECAP I’) was formed in September 2008 to seek out investment opportunities which resulted from the financial crisis. RECAP I acquired several residential blocks in Central London at material discounts to their “break-up” value. As the economic recovery took place and opportunities to acquire existing individual buildings dissipated, RECAP began focusing on acquiring properties to hold on a long-term basis for income.
Following RECAP I, the structure evolved and RECAP II and RECAP III were created as long-term hold ‘evergreen’ structures. These funds have the advantage of being long-term, patient capital which does not require typical opportunity fund returns while at the same time are able to act quickly and decisively in the way that entrepreneurial opportunity funds often do.
In 2017, RECAP IV was formed to focus on developing large-scale new rental residential properties in Greater London.
At present RECAP II, III & IV own or have under development over 1,000 residential units, primarily in London including London’s tallest rental tower as well as a new boutique hotel near the Tate Modern museum in South London