Value Add Investment Strategy
Strategy
Value-Add Multifamily Investment In Focus
When applied correctly, value-add multifamily investing (value add investment strategy) can deliver excellent risk-adjusted investment returns to accredited investors. Our experienced team of asset managers, designers, project managers, and property managers have perfected this investment strategy over years of experience, which we execute with precision and professionalism, to drive extraordinary strategic value above market returns for our investors.
Our Approach
On Value Add Investment Strategy
- Our funds raise capital to invest in Class B & C multifamily workforce apartment properties across U.S. secondary and tertiary markets.
- We believe this segment of real estate covers the three major concerns in investing: Safety, Security and Profit.
- We are vertically-integrated with all aspects of our business in-house, which lowers our costs and allows us to pass on savings to our residents without jeopardizing returns to investors.
- We only pursue assets that fit our investment criteria and underwrite at ~20% IRR* net to investors.
- Our typical hold period is 60 months.
- Our exit strategy is to sell our assets to a controlled REIT at market price.
Phase 1: Focus, Locate, Analyze
Phase 2: Acquire, Reposition, Rebrand
Phase 3: Manage & Exit
Phase 1: Focus, Locate, Analyze
Phase 2: Acquire, Reposition, Rebrand
Phase 3: Manage & Exit
Phase 1: Focus, Locate, Analyze
Phase 2: Acquire, Reposition, Rebrand
Phase 3: Manage & Exit
Phase 1: Focus, Locate, Analyze
Focus on Sub-markets & Assets
Minimize Market Risk
- Focus on high job growth areas
- Focus on lagging housing supply areas
- Focus on value areas within sub-markets
- Screen B & C class assets as value-add opportunities
Underwrite & Analyze
Minimize Project Risk
- Complete detailed anaysis of sub-market real estate fundamentals
- Underwrite assets in terms of value-add opportunity
- Finalize business plan & investment budget
Phase 2: Acquire, Reposition, Rebrand
Reposition & Increase Income
Capture Market Demand
- Targeted capital improvements with trendy aesthetics and amenities
- Raise asset level to compete with best in B-class assets
- Rebrand to target workforce population wanting lifestyle amenities
Phase 3: Manage & Exit
Manage the Asset
Maximize ROI
- Streamline operations
- Replace management team
- Reduce expenses
- Maximize cash flow
- Maimize yield
Exit Strategy
Monetize
- Re-finance to partially return equity to ownership
- Fully exit via market sale, returning all equity to ownership at maximum IRR