StarPoint identified undervalued land in coastal Santa Monica, and purchased it in 2005 for $12.7M. The land was ground leased with a 98.2K SF Class A office building on it, and was periodically appraised at fair market value, with the ground lease income increased accordingly. As a result, the value of the land appreciated over 5x during StarPoint’s 14 year hold period, helping StarPoint achieve a 15% IRR and $52M in profits.
