SAN DIEGO—For every acquisition, Parallel Capital Partners Inc. identifies what will physically be done to the property post-closing to enhance value, CEO Matt Root tells GlobeSt.com. In Part 2 of this two-part exclusive interview, Root discusses his firm's plans for repositioning acquisitions; in Part 1, he discussed his firm's overall acquisition strategy.

GlobeSt.com: How do you approaching making improvements to a property following the acquisition?

Root: The Parallel team has a superior long-term track record of creating value in underperforming properties. We have a fully integrated operating platform with a deep, talented and experienced management team. Our value creation expertise is unparalleled in both up and down markets, particularly for properties that require extensive submarket knowledge and turnaround skills. We invest in and create value in commercial real estate. For every acquisition, we identify what will physically be done to the property post-closing to enhance value. We bifurcate our capital plan between building-systems upgrades (roofs, HVAC, mechanical, curtain walls, etc.) and elective cosmetic capital (lobby renovations, common-area corridors, paint and carpet, etc.).

GlobeSt.com: What price point are you looking at for this type of acquisition?

Root: We are looking for attractive value investments that fit our investment strategy and return criteria. For our purposes, I would say that value is the present value of the projected future income stream or benefits that we expect to obtain from the property. We pursue price points that reflect a discount to historic value and replacement cost.

GlobeSt.com: Are you only focusing on commercial office or will you consider industrial, retail multifamily or hotels?

Root: We have a history with all of the food groups except multifamily. We are not as focused on the product type as much as we are focused on the opportunity. Our particular skill set in creating value transcends specialization in any one product type and instead relies upon seller circumstances, transaction characteristics and property attributes that often lead to highly profitable transactions.