13th Floor Investments is a vertically integrated real estate investment and management company based in Miami, Florida. Through our family of real estate fund vehicles, we acquire real estate assets, either directly or indirectly, by investing at various levels of the capital stack. We seek to invest in real estate assets at a cost-advantageous basis and drive value through a focus on operations and cash-flow management. We attribute our success to our ability to invest opportunistically and to assume the role of both investor and operator, across all asset classes and stages of the economic cycle.
Our team of professionals possesses the ability to source, analyze, develop, operate, and exit an investment from start to finish. We have a combined experience in real estate exceeding 50 years, covering the real estate finance, construction, development, property management, private equity, and hedge fund industries.
13th Floor At a Glance
Founded: June 2003 by Arnaud Karsenti.
Investment Focus: The firm targets investments in Florida that, as a result of general economic conditions, the cyclical nature of the real estate market, tightening of credit, market inefficiencies, sub-optimal management practices, or incompatibility with the current owner’s investment strategy, have value-add or opportunistic potential.
Current Portfolio: 13 active investments across the residential, commercial, and multifamily asset classes in Florida.
Exited Investments: 7 fully exited investments across the residential and multifamily asset classes in Florida.
Investment Funds: The Florida Real Estate Value Fund was launched in September 2010 with $50 million in capital commitments.
Experience: The senior management team has combined experience in real estate exceeding 50 years, covering the real estate finance, construction, development, property management, private equity, and hedge fund industries.
Our Value Investment Thesis
We are value investors, thriving on our ability to appropriately assess risk and reward in complex, special situations.
Value & Price
- Keen sense of intrinsic value based on solid factual and analytical foundation.
- Buying assets at a price below this fundamental value is the most dependable route to profit.
- Buying correctly is a key element in control and limitation of risk.
- Wait for “good buys” vs. “putting money out” philosophy.
- Missing a profitable opportunity is of less significance than investing in a loser.
- Continued dialogue with seller throughout a process.
- Focus on ability to survive under adverse circumstances.
- - Creative structuring with keep attention to downside protection.
- - Prudent use of leverage.
- - Multiple exit paths.
- Consistent, measurable progress rather than waiting for a big pop.
This philosophy allows us to accurately identify “good buys” and is applicable across
market cycles and asset classes.
Our View of the Florida Market
We believe that Florida is home to constant over-reaction and speculation by investors and developers, which leads to frequent market and pricing dislocations. The market typically swings between a state of froth and despair, and this volatility provides opportunities for experienced investors and managers. Florida, in general, still has a “cowboy country” mentality driven by a cast of players who are always willing to trade disproportionate risk for reward. This imprudent speculation leads to buying and selling opportunities for 13th Floor. In today’s environment, generating high returns also requires fundamental and sophisticated operational and asset management skills, an area where we have a substantial competitive advantage.
Experience Navigating Complex / Special Situations
We have experience negotiating through and structuring around complex, special situations. In fact, we thrive in these situations and believe outsized returns can be realized with manageable risk through prudent due diligence and structuring. We have closed transactions involving financially constrained developers, complex joint ventures, special servicers, banks, and other financial institutions, acquiring fee simple real estate, performing and non-performing notes, bonds, and other real estate-related securities. Our ability to perform extensive due diligence on, understand, and appropriately structure complex, special situations gives us a significant competitive advantage.
We have built a reputation as an honest partner and fiduciary in our market and pride ourselves on negotiating in good faith, providing full disclosure of our information sources and strategic partners. We continue to maintain this reputation with our partners and associates through the act of negotiating, structuring, operating, and building in good faith.
Further, we believe that partnering with the right people can bring value-added components to specific transactions that benefit our investors. Our reputation has allowed us to develop relationships that will be beneficial to us for years to come. Today, we continue to advance our relationships with home builders, developers, leasing experts, general contractors, financial institutions, lawyers, accountants, and other major players in the Florida market.