OUR

Investors

RockStep Capital offers a wide array of essential Real Estate Services that help create significant value and maximize efficiencies to its portfolio, clients and third parties. RockStep’s streamlined approach allows for comprehensive oversight amongst all of its Real Estate Verticals. From acquisition to disposition, leasing to construction, RockStep Capital has shown time and again to be a world class real estate services provider.

Deal

Typical

We focus on minimizing risk while providing solid, reliable returns to investors. A typical deal is structured as a single purpose entity with a purchased asset cash flowing from day one. This enables RockStep to pay a competitive preferred return quarterly.

The hold period on a typical investment is usually from two to seven years depending on whether the asset is a redevelopment/repositioning strategy or a long-term strong cash flow property.

Our typical waterfall structure is preferred return, then return of 100% of investor capital, and finally a spilt of the investment profits determined by risk factor.

New Deals

NO NEW DEALS AT THIS TIME

FREQUENTLY ASKED
QUESTIONS

01

WHAT IS A TYPICAL ACQUISITION?

RockStep targets fee simple interest in a cash flowing shopping center, so we can provide returns day one! The acquisition is usually structured as a single-purpose entity, so the investor understands in which specific property he or she is investing.

02

WHAT IS ROCKSTEP’S ACQUISITIONS PROCESS?

RockStep looks at hundreds of properties each year, seeking those few that have excess returns on a Risk adjusted basis. Once a viable property is put under contract, RockStep’s acquisition team completes comprehensive due diligence in order to determine if the asset is a viable investment.

03

WHAT VALUE CREATION STRATEGIES DOES ROCKSTEP IMPLEMENT?

RockStep adds value through redevelopment, renovation, repositioning, replacement of existing tenants, expense control, and innovative marketing.

04

HOW DOES ROCKSTEP LOWER THE RISK OF AN INVESTMENT?

RockStep has an experienced team in place to manage and lease our portfolio. At each property location RockStep often obtains local investors from the acquisition region which we believe will lower the risk of the investment. Local investors have an opportunity to invest in an asset that is important to their community led by a team that has deep expertise in the shopping center industry and can bring in outside capital. These local investors can help with government issues and local and regional tenant opportunities.

05

WILL AN INVESTOR BE REQUIRED TO SIGN A BANK NOTE OR MAKE ADDITIONAL CONTRIBUTIONS?

Investors will not be required to sign or guarantee any promissory note being issued as part of any financing of the Project. If the Manager decides to place debt on the property, RockStep and/or other affiliates of RockStep Capital, will sign the note if required by the lender. As a result, an Investor should not be able to lose more than his or her investment. In addition, it is currently anticipated no investor will be required to make any additional capital contributions to RockStep and/or affiliates beyond the initial investment an investor determines to make in the Company notwithstanding the right for management to make capital calls.

06

WHAT IS THE TARGETED HOLDING PERIOD FOR THE INVESTMENT?

The targeted holding period is two to seven years, depending upon whether the investment is primarily a development strategy or yield play.

07

DOES ROCKSTEP MAKE AN INVESTMENT IN EACH PROJECT?

Yes, RockStep makes a substantial equity investment in all projects.

08

WHAT FEES DOES THE MANAGER TYPICALLY RECEIVE?

The Manager (which will be an affiliate of Mr. Weiner and RockStep Capital) will receive customary brokerage fees and property management fees, and is expected to receive construction management fees, that would otherwise be paid to third parties. These fees will be outlined in the Company organizational documents and the private placement memorandum. If the best debt for the entity requires a personal guarantee from the Manager, the Manager might take a loan guarantee fee. At acquisition and disposition, the Manger will typically receive an acquisition and disposition fee. Typically, the Manager does not take an asset management fee, development fee, fund raising fee or administrative fees.

09

WHAT IS THE TYPICAL INVESTOR PROFILE?

Family offices, foundations, non-profits, investment funds and high net worth individuals (business owners and professionals).

INVESTOR INQUIRY FORM

Interested in potential investment? Please fill out the below form and someone from the RockStep Capital team with be in touch with you shortly.

Acquisitions & Dispositions

RockStep targets all shopping centers in the retail industry specifically well-anchored regional malls, grocery, power, neighborhood and community centers in secondary and tertiary markets.

We have carved out a unique niche and are one of the top private investment buyers in the country of B and C Shopping Malls, grocery anchored centers and power centers in secondary markets.

We invest alongside local investors and our existing and growing group of investors from around the country.

We believe the retail market has been tested for several years now. The assets have been stressed for so long, but traditional retail continues to stay highly profitable. While there is no doubt these properties need to be transformed, the current investment structure of malls has continued to be profitable.

RockStep likes to win! By concentrating our efforts on complex assets with transaction value of $5M to $75M where there is typically a scarcity of capital and less appetite for complexity, we feel we have an edge. We see opportunity in properties that provide challenges that we can overcome, through experience and ingenuity, to add value.

Below are the primary and secondary areas that RockStep focuses on:

ROCKSTEP

Acquisitions

RockStep is eagerly exploring emerging markets, seeking out value-add investments and working to identify stabilized properties with any of the following investment criteria:

  • Secondary and Tertiary Markets
  • Non-major MSAs with maximum population of 750,000
  • 50,000 Square Feet and up
  • Fortified communities that maintain highly desirable and quantitative amenities
  • Large Research University
  • Fortune 1000 Business
  • Top 250 hospital Network
  • Large-scale tourism
  • Military Bases
  • Low to no State income tax
  • Two Major intersections

RockStep is interested in acquiring:

  • On Market Deals
  • Off Market Deals
  • Value-add deals – via renovation, lease-up, and/or capital improvements
  • Dominant regional malls in tertiary markets
  • Functionally obsolete regional malls in need of repositioning
  • Anchored neighborhood or community shopping centers
  • Large national anchored power centers
  • Grocery anchored centers
  • Redevelopment centers
  • Properties in distress
  • REO
  • Lender Directed Short Sales
  • Bank Notes (Performing and Non-Performing)
  • Surplus real estate from retailers
  • Rollover risk and credit risk

Deal

Typical

A typical investment structure for RockStep usually looks like the following:

Single Purpose Entity

2 – 7-year hold
+7% preferred return day one
Target minimum of 12% IRR

THE ROCKSTEP WAY

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Thank you for your interest.