APPROACH

INVESTMENT FOCUS

 

VALUE ADD PROPERTIES

We Our investment strategy is focused on the acquisition, repositioning, and/or recapitalization of multifamily assets in major growth markets with solid economic foundations and positive demographic fundamentals. We invest in properties that offer value-add and repositioning opportunities for Class C and B apartments that are well-located and do not suffer from functional obsolescence. We invest in properties that offer, at least, one of the following opportunities: to improve operations, occupancy and rents, net operating income, and/ or cosmetic appeal. These properties often need investment in cosmetics or a rehab program to increase its appeal while meeting demand expectations.

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UNIFORMITY OF REVENUE

We invest in properties which can provide a homogeneous income throughout the asset’s life cycle. We perform a thorough market analysis and a unit-by-unit inspection of the property, and we work with a renowned team of professionals with more that 25 years in the market to stabilize the cash flow and maximize returns.

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LIMITED RISK

We look for opportunities with limited risks and where volatility is minimal. Since our strategy contemplates limited risks and consistent returns, we intend to limit our exposure to situations that tend to produce highly variable results or where external risks can not be overcome with good management. See Risk Section in PPM

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ECONOMIES OF SCALE

Substantial savings in operational costs could be achieved when we acquire properties with >150 units. 

TARGET AREA

SELECTION CRITERIA

TARGET AREA:    East Coast of the United States.

MARKET TYPE:    Suburban cities with at least 10,000 people and sustained population growth

LOCATION:    High-visibility locations on well-trafficked streets; near major highways, big-box   stores or major employers. Short commute to large employment centers as well as   multiple high quality shopping/ dining/recreational areas.

PROPERTY CLASS:    Class B or Class C+ multifamily properties in established Class B and B+ suburban   neighborhoods (Garden Style apartment communities)

PROPERTY SIZE:    150 units or more 

UNIT MIX:    Mixture of layouts with a 2:1 or better ratio of 2BR/3BR apartments to 1BR   apartments;

AGE:      Post-1990 (Properties' in their 70’s and 80’s would be considered on a case by   case basis)

UTILITIES:   Individually metered preferred

OCCUPANCY RATE AT PURCHASE:  >75% (Occupation <75% would be considered on a case by case basis)

PRICE RANGE:    $7 million to $20 million 

TERMS:   Typically all cash, but will consider assumption of existing financing or seller   financing

TARGET AREA