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Our Strategy

Historically, multifamily has been the least volatile real estate asset class during downturns while offering strong upside potential during up-cycles. Within multifamily, the A and B classes provide attractive investment opportunities due to the imbalance between the growing demand and the limited new supply of these units.

MARKET SEGMENTS

  • Age: The 18-35 year old market segment is 22% of the U.S. population
  • Income: Renters who earn $80,000 or more annually
  • Price: Where rent is 30% or less of the median income
  • Retiring Baby Boomers are scaling down and enjoying maintenance-free multifamily living

TARGET VALUES

  • Size and Price: 100+ units in the $5MM – $50MM range
  • Returns: 20% Average Annual Return
  • Minimum Debt Service Coverage ratio of 1.25
  • Type: B- to A+ properties located in B to A areas
  • Location: Emerging market areas with indicators for imminent and long-term economic growth

PROPERTY CRITERIA

  • Multifamily residential apartments
  • Pitched roof construction preferred
  • Occupancy above 80% with the exception of properties that require renovation, providing properties are well located and present value-add opportunities 
  • Built in 1990 or newer

INVESTMENT PRINCIPLES

  • Long-term Hold 3 to 10 years
  • Cash-flow within 12 to 18 months
  • Capture Appreciation – Cash out refinance within 3 to 6 years
  • Buy Right, Manage Right, Finance Right

We specialize in value-add multifamily real estate that returns strong, risk-adjusted cash-on-cash to investors by leveraging years of expertise to extract maximum value from every asset it acquires.