BUSINESS STRATEGY

  • Transaction Size:     Equity from $10 million to $30 million,
    Purchase price from $25 to $70 million

  • Class 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