For this year, Amstar will be committing more than $300 million of itsown discretionary equity. During the past 24 months, says Finke, it achieved an undisclosed but "significant investment return" for itself and joint-venture partners, which it credits to its disciplined disposition program. It performed so well in fact, that for the first time since it was founded in 1987, it is considering opening its fund to outside institutional investors.

The firm seeks under-performing assets in A locations where it can add value as well as develop assets in markets with high barriers to entry. At the end of 2004, it had about $400 million in equity under management.

"We're positioned to capture value for ourselves, our joint-venture partners and our institutional investors because most importantly, we understand the fundamentals of real estate, can move quickly to close transactions and bring a high level of execution certainty to our transactions," Finke says. He adds that Amstar closed every deal it decided to pursue since it was founded almost two decades ago.

"Those are crucial elements in today's marketplace," he states. "With abundant capital squeezing limited opportunities even further, investors must act quickly and smartly to compete today."

Since inception, Amstar has invested about $2 billion domestically in office, apartment and hotel properties. It has recently decided to add retail and industrial properties to its portfolio.

"In 2004, we defined the tenets of our investment program to capture value and enhance returns by focusing primarily on the office and multifamily sectors," Finke says. "Additionally, we refined our industrial-property resources to increase holdings in that area and will continue to explore opportunities that meet our investment criteria in the hotel and retail sectors." Even more important, he says, last year Amstar cemented relationships with investment partners, through a series of joint-ventures. Those relationships will fuel growth over the next decade, he says.

Some of its more prominent deals in 2004 included: the sale of the 1.1-million-sf Colorado Center (now Yahoo Center) in Santa Monica, CA for $443.6 million; a $46-million acquisition of two historic office buildings in Downtown Houston; the acquisition of two infill sites in Southern California now under development as multifamily projects; a $110-million lease with the Department of Justice in Washington, DC--the largest lease deal in the city last year; recapitalization of Independence Plaza, a 25-story office tower in Downtown Denver; the sale of a 437-unit luxury apartment community west of Downtown Houston; the sale of 300 E. Lombard, a 275,000-sf office building within Baltimore's CBD, for $40 million.

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GlobeSt.com EXCLUSIVE: Amstar Group Sees a $1B-Plus Year

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