Louis & Joel Kestenbaum of Fortis Property Group Explain Successful Three-Party Value-Creation Strategy

NEW YORK, Oct. 18, 2012 /PRNewswire/ -- Success in commercial real estate is not an accident. It begins with a well-conceived strategy and depends on thorough due diligence and hard work from a dedicated team of smart, experienced professionals. This describes the strategy of the leaders and founders of Fortis Property Group -- Louis Kestenbaum, Chairman, and Joel Kestenbaum, President.

This is how the Fortis Property Group, LLC of Brooklyn, NY consistently succeeds in the competitive and dynamic commercial office real estate markets in the Northeastern US and Texas. Fortis owns, operates, invests in and develops real estate – Class A commercial office space, industrial real estate and residential multi-family properties including condominiums and rentals.

Photolink:
http://www.flickr.com/photos/louiskestenbaum/8030327814/in/photostream/lightbox  

Caption:
Recently purchased by Joel and Louis Kestenbaum, 30 Henry Street will soon be a classy 5-story residential building.

Louis and Joel Kestenbaum explain in detail the three pillars of Fortis' commercial property value-creation strategy.

• Vacancy Lease-up: Fortis targets assets that have excess market vacancies resulting from either poor leasing management or execution by prior ownership, or soft tenant markets (that have begun improving). Fortis also targets properties with contiguous blocks of vacancies in markets where contiguous space is desired but limited.
• Mark-to-Market Leasing: Fortis seeks multi-tenanted assets with reasonably staggered, below-market lease expirations. These opportunities are valued relative to the vacancy and lease-up costs associated with the lease expirations and are pursued only where the market leasing trends overwhelmingly indicate mark-to-market upside.
• Asset Repositioning: Fortis identifies and pursues properties that are superiorly located but need to be updated. These updates may include lobby and/or other common area renovations and/or the addition of tenant amenity spaces (e.g., cafes, fitness centers, conference centers, and/or valet parking services) within the properties. The renovations are then used to reposition or reintroduce the property to the marketplace and drive-up leasing and/or occupancy rates.

Additionally, Fortis seeks acquisition opportunities with inflated capitalization rates resulting from either (i) general market conditions (e.g., distressed capital / economic markets); (ii) diversification of target properties (e.g., mixed property classes such as single tenant and multi-tenant assets grouped together in a portfolio sale); (iii) critical seller compulsions (e.g., seller has internal compulsions to conclude the sale by a specific date and provides a discount for execution); and/or (iv) assets that do not fit the sellers' mandate and are being divested from larger portfolios.

Contact:
Mark Weiss
(646) 843-2111

This press release was issued through eReleases® Press Release Distribution. For more information, visit http://www.ereleases.com.

SOURCE Fortis Property Group

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