Sustainability through the economic cycles.
- Our dynamic rental pricing model allows for revenue increases in varied economic climates
- Transitioning utilities to residents has nearly eliminated investors' exposure to heat and electric costs
- Negotiating annual fixed price contracts with maintenance providers makes our monthly expenditures predictable
Different operational dynamic, same approach to revenue.
- Attractive entry points and readily fixable deficiencies
- Strong market position through concurrent purchase within the same town
- Capital improvements and operational grit offer opportunity to quickly grow sales
Persistent supply and demand imbalance.
- Demand for housing continues to outstrip supply
- The 70MM+ strong millennial generation has emerged from the depths of the Great Recession ready to live on its own
- At the same time, the supply of new housing units slowed to a trickle during the recession and has not recovered
Possitive attributes of Direct Real Estate as an asset class.
- We measure risk and compare it to other asset classes to quantify the volatility of its return over time
- The superior risk/return trade-off of private real estate is the foundation for our investment strategy
- Direct real estate is a more tax efficient investment vehicle than comparable yielding assets thanks to its depreciation shield
Increase the recurring cash flow.
- Grow topline with disciplined management
- Cut recurring costs in creative ways
- Increasing profit creates virtuous expansion in exit multiple
Use leverage appropriately.
- Borrow from local banks based on long-term relationships
- Win subsidized loans for renovations and energy efficiency
- Create preferred tranche to enhance common equity return
Buy low, sell/refinance high.
- Capitalize on asymmetry with proprietary research & origination
- Disciplined valuation of replacement cost and earning power
- Seek situations where “Mom & Pop” selling below intrinsic value
Affordable Housing Review:
US Multifamily Marketview:
Center for Real Estate at MIT
Cash Flow Performance of Fannie Mae Multifamily Properties:
GSAM Macro Insights - The US Real Estate Cycle:
Harvard Joint Housing Study
America's Rental Housing:
Housing America's Older Adults:
The State of the Nation's Housing:
Marcus & Millichap
The Apartment Outlook:
The Multifamily Outlook:
National Apartment Report:
US Economic and Apartment Market Outlook:
US Apartment Investment Forecast:
Urban Land Institute (ULI)
Emerging Trends in Real Estate:
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016