We focus our acquisition efforts in major metropolitan markets and submarkets nationwide where we have both acquisition experience and property management infrastructure. We believe that submarket conditions, as well as overall Metropolitan Statistical Areas (“MSAs”), determine the long-term growth prospects for a given asset.
We target submarkets where scarcity of available land for in-fill development creates an extremely favorable investment environment for middle-market properties. Our interdisciplinary teams composed of acquisition, asset management, redevelopment and property management personnel then assess the strength of submarkets where we have identified acquisition opportunities.
We focus on quality multifamily investments around middle-market multifamily acquisition opportunities. Middle market opportunities generally have residents whose income falls between the 40th and 80th percentile of income within the market. In addition, we focus on properties built between the 1980’s and 2000’s. Residents of these types of properties tend to “rent by necessity” rather than “rent by choice” and as a result have stronger ties to the property.
We believe such middle-market multifamily assets have a greater likelihood of generating higher returns from successful renovations, rehabilitation or redevelopment efforts and are more resilient during economic downturns relative to other multifamily asset categories. Specifically, we seek to create value by targeting middle market assets or portfolios of assets that are: (1) mismanaged; (2) in need of renovation, rehabilitation, redevelopment or new development, or (3) are available at a discount from lenders and distressed sellers.
We believe that combining insightful top-down market research with our proprietary bottom-up due diligence process run by our experienced field personnel enables us to identify selected investments that have the potential to outperform the market.