Acquisitions 
Asset/Property 
Management Advisory Services 
Capital Markets 

THE GOLDSTAR GROUP
4630 Montgomery Avenue, Suite 500, Bethesda, MD 20814   t: 301-657-8848   f: 301-657-3698
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ACQUISITIONS

The Goldstar Group is experienced in the opportunistic acquisition, repositioning and redevelopment of commercial real estate in the Washington, DC metropolitan area. Disciplined investment philosophy has made us a selective buyer. Over the course of Goldstar’s history, the firm has acquired office and multi-family properties totaling in excess of 1.5 million square feet.

Historically, Goldstar has acquired Class A-, Class B and Class C properties which are typically “Off The Institutional Radar”—seeking properties which may have suffered from inefficient or inattentive management, or fragmented ownership (institutional, private, foreign). Recently Goldstar has expanded its acquisition strategy to include investing in non-performing loans and distressed assets of all product types.

Goldstar has a proven track record as preferred partners and reliable closers. Goldstar has excellent credit, strong liquidity and no distractions from non-performing legacy assets. Our strength in acquisitions comes from our market expertise, financial acumen, in-house management and development experience. Our deep network of trusted relationships includes lenders, owners, brokers and service providers. Most importantly, our agility allows us to respond quickly to market opportunities as both buyer and seller.

Opportunity:
In January 2010, Goldstar Properties acquired the mortgage and subsequently foreclosed on the 86 unsold units at the Floridian, a 118-unit luxury condominium located at 919 and 929 Florida Avenue, N.W. in Washington, D.C.’s U-Street Corridor. Goldstar purchased the Floridian mortgage from Bank of America and Sovereign Bank and, through an existing agreement, was able to foreclose and immediately take title to the units. The mortgage was purchased at a sizeable discount to the outstanding debt. Goldstar pursued the acquisition given the ability to reduce the basis in the building and the supply/demand inbalance for condominiums in the District.

Execution:
The Goldstar Group was successful in the acquisition of this asset largely based on its ability to perform due diligence and finance the deal in less than 30 days. With capital markets still reeling from the recent economic downturn, Goldstar gained a competitive advantage by having immediate capital available to deploy. Goldstar’s access to capital for this deal was enhanced with the formation of the new Goldstar subsidiary, Metropolis Capital Finance.

Opportunity:
In 2005, Goldstar Properties acquired a vacant 200,000 SF Class C Office and 35,000 SF Warehouse property with additional developable land with a planned speculative gut/rehab of the office building.

Execution:
Successfully procured a GSA pre-lease for 85% of the office building and leased the entire warehouse to a neighboring tenant. The GSA pre-lease created sufficient value to refinance the development at a level which returned all equity to investors. Traditional office gut/rehab has evolved into a $100+ million mission critical data center being developed by Goldstar in coordination with two government agencies.

Opportunity:
In 2004, Goldstar Properties acquired a 107,000 SF Class A office building which was a 94% leased property with below market in-place rents. The building suffered from poor management, and tenant relations adversely affected the seller’s chances of successful renewing near-term lease rollovers

Execution:
Goldstar implemented our value-add management philosophy to improve operating efficiencies and tenant relations. We stabilized the rent roll by successfully renewing all tenants with near-term lease expiration, in turn increasing the NOI. The building was sold in 2006 for a whole dollar profit of $6 million.