INVESTMENT PHILOSOPHY
Our core thesis is rooted in the long-term demographic and macroeconomic trends driving the multifamily sector.
Delays in life events like marriage, children and home buying are driving an already growing renter population that is underpinned by the two largest generations in history (millennial and baby boomers).
With home ownership near all-time lows due to limited savings and a large debt overhang, we firmly believe these trends will continue.
Within multifamily, Class B and C properties provide some of the most attractive risk-adjusted returns due to the imbalance between the strong and growing demand and limited new supply of these units.
OUR STRATEGY
We are solely focused on value-add multifamily in North and South Carolina.
We consider property-specific information, local economic factors, local market factors, investment return requirements, and financing options. We also conduct a thorough risk analysis to determine if the opportunity fits with our objectives.
Due to the flexible nature of our investor base, we have the ability to tailor our investments to best suit the sellers and lenders with which we work. Our deep-rooted operating experience allows the team at Rebel Capital Group to respond quickly and thoughtfully to investment opportunities.
We pride ourselves in our ability to structure deals to maximize value for all stakeholders while staying disciplined to our core investment principles.
SUBMARKET SELECTION
Rebel Capital is aggressively targeting opportunities to expand our portfolio in markets which provide robust population, job and wage growth and where there is a supply-demand imbalance. 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
PROPERTY SELECTION
Our team is dedicated to building strong broker relationships and maintaining constant dialogue with owners of multifamily assets in our target markets.
In addition to qualitative factors, we have developed a proprietary acquisition and transaction model to analyze and underwrite potential investments, and we can respond quickly, thoughtfully, and credibly to any opportunity.
When underwriting, we typically take the following approach:
o We underwrite all transactions to a 5 year hold to compare on an apples-to-apples basis
o We don’t assume any refinance or take short term financing risk
o Target low-mid teens IRR with mid single digit CoC
o Ultimate price is based on achieving stabilized yield on cost 150bps above the market cap rate
We have historically converted 100% of LOIs at the contract price. We pride ourselves on our reputation and commitment to being a good partner for all stakeholders in an acquisition.