A summary of our investment strategy and the factors that lead to our success
Our strategy focuses on acquisitions principally between $10 million and $50 million. This niche is out of reach for most individual investors and small investment companies, and below the REIT and institutional investment company threshold.
This is the range that enables us to take best advantage of our experience and track record of enhancing value, improving asset performance, and aggregating assets that may attract the interest of institutional buyers.
We acquire underperforming multifamily real estate assets that are in select submarkets. These are properties where we can add value through capital improvement programs, rehabilitation, professional property management, and repositioning.
The assets we acquire provide opportunities to reposition, add value, and increase cash flow. The critical success factors that we believe provide a competitive advantage to our strategy are:
- Our leadership has a significant track record, having completed over $8 billion of multifamily acquisitions over a combined 100+ years of experience;
- Conservative investment strategies; experience, expertise, and ownership track record developed and proven through multiple real estate cycles;
- Planned diversification and opportunistic acquisitions into additional multifamily housing and other real estate types that are forecast to continue to gain value and momentum, especially in markets where we have scale across our shared resources.
- Management scale of 15,201 units in California and Colorado;
- We are a preferred and pre-approved borrower with Fannie Mae / Freddie Mac / HUD, and key portfolio lenders;
- Recurring relationships with institutional and private equity investors across the US;
- Deal flow pipeline of qualified opportunities through our outstanding relationships with the top multifamily brokers in our target markets as well as our extensive network of property owners;
- Competitive pricing for well-located multifamily properties below replacement costs to replicate the assets;
- Significant barriers to entry for new multifamily rental housing:
- Scarcity of available property and land for new development;
- Expense of underlying land makes development cost prohibitive;
- Rigorous and costly entitlement process.
- Unique knowledge and access to California and Western US multifamily markets:
- Some of the nation’s most favorable multifamily markets;
- Opportunities for repositioning, renovation, modernization,
and value creation;
- Diverse employment base in coastal regions;
- Deep resident pool for workforce housing (renters by necessity);
- High cost of housing between renting and home ownership;
- Historically low-vacancy, high-value real estate.