Equity partnerships for value creation
CapitalStone's equity platform provides direct investment capital through joint venture structures. We partner with experienced sponsors on value-add, opportunistic, and development strategies.
Simple partnership model
We provide equity capital to experienced sponsors for value-add and development opportunities.
Value-Add Projects
Investment Range: $10M - $75M per transaction
Target Returns: 15%-20% IRR, 1.6x-2.0x equity multiple
Hold Period: 3-5 years
Focus: Properties requiring physical improvements, operational enhancements, or strategic repositioning. Ideal for experienced sponsors with proven track records in value creation.
Development Projects
Investment Range: $15M - $100M per project
Target Returns: 18%-25% IRR, 1.8x-2.3x equity multiple
Hold Period: 3-7 years
Focus: Ground-up construction and major redevelopment. Requires strong pre-development work, realistic underwriting, and experienced development teams with local market expertise.
Portfolio Equity
Investment Range: $20M - $150M
Structure: Flexible based on sponsor objectives
Hold Period: 3-10 years
Focus: Recapitalizations, partner buyouts, estate planning, and portfolio-level financing. Can be structured as common or preferred equity depending on tax and control considerations.
What we invest in
We focus on specific property types and investment strategies.
Multifamily
Market Focus: Market-rate and affordable housing
Strategies: New development, repositioning, lease-up, and value-add renovations
Key Markets: Primary and secondary markets with strong demographic fundamentals
Requirements: Experienced sponsors with local market knowledge and proven track records in multifamily operations
Office
Market Focus: Repositioning, conversion, and build-to-core
Strategies: Adaptive reuse, amenity upgrades, and technology integration
Key Markets: Urban cores with strong employment growth and transit access
Requirements: Development teams with office leasing expertise and strong tenant relationships
Industrial
Market Focus: Logistics, manufacturing, and distribution
Strategies: Last-mile delivery facilities, cold storage, and e-commerce fulfillment centers
Key Markets: Major distribution hubs and population centers
Requirements: Industrial development experience and understanding of supply chain dynamics
Retail
Market Focus: Repositioning and redevelopment
Strategies: Mixed-use conversion, experiential retail, and food hall concepts
Key Markets: Dense urban areas and suburban town centers
Requirements: Retail leasing expertise and relationships with national and local tenants
Institutional capital, local expertise
We combine institutional relationships with deep local market knowledge.
200+ Capital Sources
Institutional Network: Life insurance companies, pension funds, sovereign wealth funds, and family offices
Global Reach: North American and international capital sources
Diverse Products: Senior debt, mezzanine, preferred equity, and common equity solutions
Competitive Terms: Access to best-in-class pricing and flexible structures
8 Regional Offices
Local Expertise: Deep market knowledge in major metropolitan areas
Stakeholder Relationships: Brokers, contractors, municipal officials, and regulatory bodies
Market Intelligence: Real-time insights on local market conditions and trends
Execution Support: On-the-ground presence for due diligence and project management
Flexible Structures
Common Equity: Full partnership with shared upside and downside
Preferred Equity: Fixed returns with limited upside participation
Hybrid Structures: Custom solutions based on sponsor objectives and tax considerations
Control Options: Voting rights and management control tailored to partnership needs
Execution Certainty
Proven Track Record: $24B+ in completed transactions across all asset classes
Timely Closings: 95%+ on-time closing rate with transparent communication
Risk Management: Comprehensive due diligence and underwriting processes
Post-Close Support: Ongoing relationship management and portfolio monitoring
How we work together
Simple steps to successful partnerships.
Initial Discussion
Project Review: We analyze your investment strategy, market positioning, and financial projections
Alignment Check: Ensure fit with our investment criteria and risk parameters
Preliminary Terms: Discuss potential partnership structure and key terms
Timeline: Establish realistic timeline for due diligence and closing
Due Diligence
Property Analysis: Physical inspection, environmental review, and market comparables
Financial Modeling: Detailed underwriting with sensitivity analysis and stress testing
Sponsor Review: Track record analysis, reference checks, and operational capabilities
Legal Review: Partnership agreements, operating agreements, and regulatory compliance
Partnership Structure
Equity Terms: Ownership percentage, preferred returns, and promote structures
Governance: Voting rights, management control, and decision-making processes
Capital Calls: Funding schedule, reserve requirements, and additional capital needs
Exit Strategy: Disposition timeline, sale process, and distribution waterfall
Execution
Capital Deployment: Timely funding according to agreed schedule and milestones
Ongoing Support: Regular communication, performance monitoring, and strategic guidance
Value Creation: Active participation in major decisions and operational improvements
Exit Management: Coordinated disposition process and optimal return realization
Explore partnership opportunities
Our team is ready to discuss potential joint venture opportunities and how our capital and expertise can support your investment strategy.
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