The following criteria are used to identify undervalued multifamily properties for acquisition, value optimization, management and disposition.
- Age: The 18 to 34 year old market segment comprises 22% of the U.S. population
- Income: Renters who earn $35,000 and less annually
- The retiring Baby Boomers are scaling down and are enjoying carefree multifamily community living.
- Multifamily residential apartments
- Roofs with pitched construction
- Minimum Occupancy 80% with the exception of properties that require renovation, providing properties are well located and present value enhancement opportunities
- Size and Price: 100+ units in the $5MM – $15MM range
- Returns: 15-20% Cash on Cash, minimum Debt Service Coverage ratio of 1.5
- Type: C- to B+ properties located in C- to A areas
- Location: Emerging market areas with indicators for strong near and long-term economic growth