Investment Strategy

Strategy

Investment Criteria

INVESTMENT CRITERIA

We acquire B and C class multifamily real estate assets in select submarkets. These are properties where we can add value through capital improvement programs, rehabilitation, professional property management, and/or repositioning. Our core focus is on maximizing cash flow and we will avoid high-risk financial engineering to derive our returns. The properties we acquire typically meet the following criteria:

  • Value-add multifamily properties with 75+ units

  • Class B and C quality, improvable to Class B+ with light renovations

  • Rents 20%-30% below market

  • Under-performance due to inefficient property management

  • Opportunity to acquire below replacement cost

  • Transaction sizes between $4 million and $15 million


SUBMARKET CHARACTERISTICS

We look for the following characteristics in a submarket:

  • Well-located in primary and secondary markets in the U.S.

  • Populated cities with growing employment rates and population rates are desirable

  • High barriers to entry for new supply

  • Near major transportation

  • Close proximity to a stable and diverse employment base