
Why Workforce Housing?
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

Why Boutique Hotels?
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

Micro View
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

Macro View
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

Operational Enhancements
Increase the recurring cash flow.
- Grow topline with disciplined management
- Cut recurring costs in creative ways
- Increasing profit creates virtuous expansion in exit multiple

Financial Engineering
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

Price Appreciation
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