Mainstreet Capital Partners
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Investment Strategy

Mainstreet tailors each joint venture structure to meet the needs of its institutional or private partners, and to reflect the relative risk and return parameters of each particular investment. Mainstreet co-invests with its partners to ensure an alignment of interests. This structure produces decisions that maximize returns for all parties. Mainstreet then actively manages the properties through its management subsidiary, Mainstreet Real Estate Services, Inc. This hands-on approach allows Mainstreet investments to outperform their local real estate markets.

Mainstreet’s typical deal structure consists of an institutional or private investment group providing 90% to 95% of the equity required. Mainstreet invests the remaining 5% to 10% of the equity as well as arranging for any required debt. All equity investments in the transaction are treated pari passu. After repayment of debt and invested capital, Mainstreet receives a promoted interest in the investment over a given IRR hurdle. Subsequent hurdles and additional promoted interests are often included. Mainstreet receives this “promoted interest” in exchange for successfully exceeding the partnership’s investment objectives. This performance-based structure provides Mainstreet with an appropriate long-term incentive for effective management decisions.

The primary objective of Mainstreet is to be established as the preferred partner for a handful of institutional and private real estate investors. Mainstreet is working to achieve this goal by bringing together a group of highly capable individuals with the market knowledge, relationships and real estate skills required to identify and acquire attractive investments and execute value added strategies in order to provide above-average risk adjusted returns for its partnerships. Mainstreet has demonstrated this results-oriented strategy with its track record of purchasing, managing and selling its investments to maximize investor returns.

Mainstreet Capital Partners
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