Rockstreet Partners is a boutique investment firm that specializes in real estate assets throughout the United States. Across all phases of the business cycle, we excel at identifying projects with optimal risk-adjusted returns. Through our investments, we strive to provide value-enhancing solutions for our clients, the underlying real estate, and society at large.
Improving the Places Where Life Happens
Rockstreet® is an employee owned firm that endeavors to create lasting value for all stakeholders: our investment partners and the communities where we invest. Our over-arching focus, however, is meeting the financial goals of our investment partners by executing niche and innovative transactions that capture unrecognized market inefficiencies.
At our core, we believe that humility is fundamental to successful investing. That is why our investment philosophy and process places a premium on consistent returns, preservation of capital and entrepreneurship. From the initial screening to closing, management and disposition, our investment process strives to uncover durable value propositions that are compelling in any economic environment -- and to see they remain so throughout our entire stewardship.
When selecting investments, Rockstreet shuns concentrated real estate markets where fundamental values are easily overwhelmed by capital flows. Instead, Rockstreet operates exclusively in the middle-market, a highly fragmented market, wrought with information inefficiencies and less institutional competition. This market structure affords Rockstreet tremendous opportunity when paired with our disciplined process.
Most importantly, we capitalize on the middle market’s inefficiencies by obtaining deep local market knowledge and expertise -- the fulcrum of successful real estate investment.
Rockstreet encapsulates the philosophy of the firm’s founders, Travis Furr and John Turner, about conducting business in an open and transparent manner. Together they bring market tested experience and a host of long term industry relationships that provide street level information that lead to unique investment opportunities.
Travis Furr is a co-founder and Principal of Rockstreet, where he focuses on the firm’s investment strategy and investment origination. He is the point person for much of our initial screening of new investment opportunities, and together with John Turner, directs the firm’s asset and portfolio management activities. Mr. Furr’s resume includes an extensive array of investment management experience in all major real estate product types, including retail, multifamily, industrial and office.
Mr. Furr previously was a Partner and member of the Investment Committee at Phoenix Capital Partners, a middle-market private equity real estate firm. His tenure at Phoenix Capital included direct and substantial involvement in more than 100 individual transactions at a total cost in excess of $2 billion. The breadth of experience at Phoenix Capital ranged from acquisitions, redevelopments and new development projects. Mr. Furr held many responsibilities including formulating new investment strategies and new investment origination, investor relations, asset and partnership management and the day-to-day oversight of the firm’s investment portfolio.
Mr. Furr is an active member of the Urban Land Institute, International Council of Shopping Centers and The Real Estate Council. Mr. Furr received a B.S. degree in Business from the University of Missouri.
Rockstreet’s other co-founder and Principal is John Turner. Mr. Turner focuses primarily on developing the firm’s larger investment strategy, growing and maintaining our investment partner relationships and overseeing the back office operations team. In addition, as counsel, Mr. Turner is responsible for guiding all of the firm’s legal affairs, including due diligence and legal work related to corporate matters, individual investments, and risk management.
Mr. Turner was previously Managing Director and General Counsel at Phoenix Capital Partners, a middle-market private equity real estate firm. He was responsible for managing the capital raising efforts for all of Phoenix Capital’s investment platforms; analyzing and vetting potential investments; and performing various internal legal functions. Prior to his real estate career, Mr. Turner was in private law practice at the international law firm Locke Lord LLP, and Dallas-based Gruber Hurst Johansen Hail LLP. Mr. Turner began his law career serving as a law clerk for the Hon. John McBryde, U.S. District Court for the Northern District of Texas. He is currently on the board of directors of The Real Estate Council and a member of Urban Land Institute.
Mr. Turner earned his J.D. from Georgetown University Law Center and a B.A. from The University of Texas at Austin. Prior to undertaking his formal education, he served as an enlisted infantryman in the U.S. Army.
Humility is the foundation of all successful investing. We therefore practice a disciplined investment process that places a premium on consistent returns, preservation of capital and entrepreneurship.
Making Fewer & Better Decisions
Rather than attempt to predict the future, we believe in maintaining a posture from which to exploit the present. Markets fluctuate, and in doing so present opportunity for some, pain for others. We therefore follow these basic rules so that Rockstreet always remains well-positioned to capture today’s best opportunities when they are presented:
Investment Performance over Asset-Gathering. We focus on the quality of our investments, and not on the growth in our assets under management. As a result, we will always make a relatively fewer number of investments—because the odds of success increase whenever the pressure to deliver a high volume of activity is eliminated.
Maintain Proper Risk Controls. We are concerned first with preservation of capital and, second, with the generation of a return on our capital. We will only invest when we find an opportunity to generate an above-average return with below average risk.
Deliver Consistent Results. Our investment partners deserve consistent performance regardless of the economic environment. We will demonstrate our skill, not through wildly gyrating returns, but through a steady accumulation of above-average returns from real estate assets that can outperform in any economic cycle. Because these opportunities are rare, we will usually have a transaction volume that is below those of our competitors.
Maintain a Countercyclical Mentality. We strive to always be moving in the opposite direction from the business cycle. Superior investors understand how the momentum of cycles can perpetuate itself into the next market correction. Our purpose, therefore, is to position ourselves so that we stand ready to execute whenever such moments arise. As market conditions evolve, we will shift focus among product types, geographies and strategies, while adopting an aggressive or moderate stance as needed. In this way we increase our odds of identifying and executing on opportunities ahead of the herd.
Obtain Superior Market Knowledge. Above-average returns in real estate investing demands superior knowledge of a local market’s peculiarities. As such, our process is entirely “bottom-up,” based first on our proprietary, opportunity-specific research into the product, market and most importantly, the quality and capabilities of the management team with whom we are collaborating. The opportunities we review from these groups create a proprietary mosaic of “street-level” information from which we can effectively gauge the risk-return trade off across all markets and product types.
Maintaining proper risk controls is fundamental to Rockstreet’s focus, and our commitment to preserve capital while generating a return permeates our entire investment process. From the initial screening to closing, management and disposition, our investment process is designed to consistently uncover durable value propositions that are compelling in any economic environment—and to see they remain so throughout our stewardship.
Investing in a Fragmented Market Space
Rockstreet operates exclusively in the middle market. This segment, which includes investments with a total cost between $10 million and $60 million, is a highly fragmented market, wrought with information inefficiencies and less institutional competition. The disjointed structure of the middle market affords Rockstreet tremendous opportunity when paired with our disciplined approach.
Buying, Enhancing or Creating Cash Flows
Our investment approach to real estate investment comes down to one thing: cash flow and the timing and amount of cash flow an asset can generate. At Rockstreet, this means either buying, enhancing or creating cash flows through acquisition, repositioning or development investments. We limit the type of investments we consider to one of three strategies:
Strategy #1: Buying Cash Flow. Invest in stabilized real estate assets located in primary and secondary U.S. markets with strong existing cash flows, stable and inelastic long-term demand and a deep buyer pool at exit. These investments have a core-plus risk profile.
Strategy #2: Enhancing Cash Flow. Invest in assets where either the capital structure is broken, the real estate is under-managed or the current owner is a motivated seller. These investments tend to be value-add in nature.
Strategy #3: Creating Cash Flow. Invest in new “build-to-core” developments in primary U.S. markets where: a) demand and demographic trends are strong, b) existing and planned supply will fail to meet demand, and c) the spread between the yield-on-cost and market cap rate is significantly wider than what can be obtained through acquisition. These investments are opportunistic.