OVERVIEW

13th Floor Investments is a Miami–based alternative investment management firm that invests in value-add and opportunistic residential and commercial real estate transactions within the state of Florida. The firm seeks short and medium duration equity and debt investments that offer a compelling case for generating high absolute returns. 13th Floor emphasizes investment strategies rooted in property-level operational enhancements as well as those with pricing advantages that arise from distressed, complex, and dislocated scenarios. 13th Floor was founded in 2007 by Arnaud Karsenti and has invested in residential and commercial real estate transactions with a cumulative project value of more than $1.5B on behalf of a diversified and highly regarded group of individual and institutional investors.

INVESTMENT PHILOSOPHY

With thoughtful analysis, creative structuring and superior execution, 13th Floor invests in value-add and opportunistic transactions on behalf of individual and institutional investors. Successful real estate investing depends on thorough analysis, not creative forecasts. 13th Floor believes good fortune in investing is the product of good thinking. The firm’s goal is to apply disciplined bottom-up analytical procedures, sophisticated legal and financial structures, and proactive asset management to entrepreneurial transactions that possess value-oriented investment thesis. 13th Floor’s singular focus is preserving capital while maximizing returns and minimizing risk.

The firm rejects transactions whereby the sole contributor to yield enhancement is the utilization of leverage. Instead, 13th Floor targets under-performing properties that (i) may generate improved cash flow from the implementation of a clearly defined and well-executed operating strategy or (ii) provide compelling re-development optionality. In addition, the firm seeks out temporarily illiquid situations and related pricing advantages that arise from distressed, complex, and dislocated circumstances. This “value” philosophy fosters the creation of secondary and tertiary exit strategies for investments and EQUITY moderates the impact of uncontrollable, adverse capital market fluctuations.

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INVESTMENTS

Across residential, commercial,
multi-family, value-add and
development projects with a
geographic focus on South
Florida

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MILLION OF EQUITY

Invested since 2008,
representing a total estimated
project value of over $1.6 Billion

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of all capital invested has been
returned, with an additional 1.26x
forecasted through 2022

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MILLION IN PROFITS

projected on only $138 Million
of peak exposure at any given
time in the company’s history

FUNDS

13th Floor’s investments are structured in numerous capital forms including equity, preferred equity, mezzanine loans and transitional senior loans. 13th Floor determines its capital structure for a particular transaction on the merits of investment basis, capital preservation and risk-adjusted return.

The firm’s funding is discretionary and is derived from individual and institutional commingled funds and separate accounts sponsored and managed by 13th Floor. For more than eight years and across 43 transactions, 13th Floor has cultivated investor relationships with the highest standard of fiduciary care, transparent communication and
outstanding investment performance.

INVESTMENT CRITERIA

13th Floor has historically invested in single property transactions but has the experience and capability to invest in multiple property portfolios and real estate related operating companies. The firm acquires and operates properties for its own account and actively invests in transactions with joint venture operating partners and third party borrowers.

Residential and all major commercial real estate asset classes located throughout the state of Florida are eligible for investment consideration including office, warehouse/industrial, retail, apartments, hotel/resort, land, for-sale residential, and mixed-use properties.

The common themes that underscore 13th Floor's value-oriented
investment strategy are illustrated below:

Pricing Advantages

  • Off-market transactions
  • Structured finance applications
  • Rapid funding requirements
  • Temporary market dislocations
  • Liquid conditions
  • Complex tax, ownership, or capital structures

Under-Performing Assets

  • Vacancy issues
  • Below market rents
  • Bloated operating expenses
  • Capital deficiencies
  • Reputational issues
  • Poor management

Compelling Event-Driven Strategies

  • New development
  • Renovation or redevelopment
  • Conversion or adaptive reuse
  • Consolidation synergies
  • Environmental remediation
  • Workout scenarios including bankruptcy, foreclosure or recapitalization

13th Floor Investments is a Miami-based alternative investment management firm that invests in value-add and opportunistic residential and commercial real estate transactions within Florida. The firm seeks short and medium duration equity and debt investments that offer a compelling case for generating high absolute returns.

© 2018 13th Floor Investments