BUSINESS STRATEGY
Transaction Size: Equity from $10 million to $30 million,
Purchase price from $25 to $70 millionClass A, B, and C properties located in A or B locations
Initial medium or high occupancy - but seeking future potential cash flow growth
Unencumbered fee simple property - no ground leases
Debt assumption under the right circumstances
Below replacement cost
Constructed in 1980 or later
Assets should be of "institutional" size and quality after value-added renovation
Assets will be purchased for the following profit strategies
Pricing inefficiencies
Capital structure inefficiencies
Value-added, through physical upgrading and repositioning
Location is in exceptionally strong growth sub-markets
Capital structure: a loan is at 70-75% of valuation
Assets should be in established market areas and be a normal product type in the market
Focus on apartments for safety, predictable cash flow, and high value-added yields