Our strategies are tailored to accommodate each investment's target demographic, investment horizon, and positioning in the market to ensure we can maximize value while balancing risk and create sustainable, long-term cash flow for our equity partners.
Student Housing Investment Thesis
It is our belief that student housing offer investors a great opportunity at a near recessionary-proof asset. However, the term “recessionary-proof” is not coupled with the usual expected lower returns of a safe haven asset. Our student housing investments offer long-term stable cash flow, appreciation and tax advantages through cost segregation depreciation.
When assessing student housing opportunities, we are looking for high barriers to entry into the university’s market, offset demand/supply economics allowing for strong organic rent growth, and robust historic enrollment growth. What gives us an investment returns edge is our ability to identify short and long-term catalysts that help to differentiate our student housing product offering to the rest of the market. Those catalysts could be a combination of refitting clubhouses, adding amenities, revamping social and digital marketing, improving high-speed internet, and expanding operational efficiencies.Partner on Student Housing!
Student Housing Investment Focuses
Stabilized: focuses on acquiring assets with greater than 90% occupancy, turn-key products, and new or nearly renovated assets; we still like to strive to increase operational efficiencies with stabilized assets. While some assets are stabilized in terms of occupancy, they could still be operationally mismanaged whether it be staffing, utilities, or contract services, which we can optimize through our experienced management teams.
Core-Plus: lower-tiered, trophy assets with locations near main thoroughfares and shopping. In student housing, we are looking for core-plus assets that have all competitive amenities, location barriers to entry, and a desirable reputation among university students.
Value-Add: focus is on acquiring properties with deficiencies and reinvestment through capital expenditures (capex) and improved amenities. We have been predisposed to stabilized and core-plus assets as the lending environment has been more favorable, however, we are beginning to see more value-add student housing opportunities in the early 2000’s vintage product.
Multifamily Investment Thesis
As we gauge the broader macroeconomic climate in the United States, we continue to believe multifamily investing will be well insulated from any market downturns. As proof, in the worst economic downturn in recent memory, the Great Recession, the commercial real estate sector experienced increased vacancy rates of 1.2%.
We believe in investing in affordable housing and providing families earning at the median household income level and those firmly entrenched in the middle-class a safe and well-maintained residence. We view lower-tiered Class B properties as suitable investments and one that fits with our ethos to provide accessible and affordable housing to middle-class America.
In order to prepare investors for the worst case scenario in any deal, we stress test our proprietary financial modelling for rehab cost overruns, increased vacancy rates on exit, and capitalization rate expansion above recessionary levels.Partner on Multifamily
Multifamily Investment Focuses
Core-Plus: assets with higher retention rates and annual rent growth rates, constructed in the last decade, and exceptionally maintained.
Value-Add: focus is acquiring properties in need of capex improvements and deferred maintenance and elevate the property to a higher benchmark and standard than the market’s comparables. Our value-add business plans are stress-tested for under performance (rent and occupancy) in order to ensure achievable returns in tougher market conditions.
Opportunistic: focus is on a patient approach to turning around a deeply troubled asset, we keep large stockpiles of operational reserves on-hand during opportunistic ventures to ensure we can ride out the market and effectively reposition the asset.