Delivering above average risk-adjusted returns while making a positive long-term impact

INVESTMENT STRATEGY

We seek to capitalize on favorable economic and demographic trends and supply/demand dynamics through the strategic development or acquisition of Multi-Family assets.

Tangible Income-Producing Assets with Attractive Risk Adjusted Returns

  • Cash yielding assets: Returns are typically paid quarterly in cash based on Net Operating iIcome (NOI) generated

  • Real assets with intrinsic collateral and land value with downside protection

  • Downside Protection: Assets serve a non-discretionary need with stable underlying demand in all economic cycles

 INVESTMENT PROCESS

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ACQUISITION CRITERIA 

MARKET SEGMENTS

  • Age: The 18-35 year old market segment is 22% of the U.S. population

  • Income: Renters who earn $50,000 or more annually

  • Price: Where rent is 30% or less of the median income

  • Retiring Baby Boomers are scaling down and enjoying maintenance free multi-family living

TARGET VALUES

PROPERTY CRITERIA

  • Multi-Family 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

  • Size and Price: 30+ units in the $5MM – $25MM+ range

  • Returns: 7-10% Cash on Cash, Minimum Debt Service Coverage ratio of 1.25

  • Type: C to A- properties located in C to B+ areas

  • Property Vintage: 1990 or newer

  • Location: Emerging market areas with indicators for strong near and long-term economic growth

Why Real Estate?

 

Cash Flow

After all expenses are paid, quarterly distributions go out to investors.

 

Leverage

We leverage Real Estate, this allows us to own a $10M property with only 25 - 30% equity required.

Tax Benefits

Depreciation is a tax write-off that enables you to keep more of your profits.

 

Appreciation

Forced appreciation through strategic value plays increase the overall value of the property.

Amortization

Residents pay down debt which creates equity, this leads to long-term wealth.

 

Stability

Multi-Family is less volatile and continues to outperform traditional stock based investments.