We are opportunistic but disciplined investors. To date, we have focused mostly on multi-family apartment complexes that are typically “B” or “C” grade properties, based on age and/or condition. We look to systematically improve our properties and communities over time and serve as the “best in class” within our sub-markets, providing superior maintenance, customer service and value.
Most of our acquisitions to date have been in the Southeastern United States, because this is where we have found the investment opportunities to be the most attractive. We remain flexible though, and continually evaluate alternative markets. We can easily shift our focus as other markets become relatively more attractive. We have recently been active in building a portfolio of single-family rental houses in the Southeast and we’ve undertaken our first land and development projects, right here in Washington State.
With our multi-family investments, we generally focus on properties that range between 50 and 250 units, were built in the 1980s or later and range in price between $2.0 million and $15.0 million. We often focus in secondary and tertiary markets.
Our annualized return on investment objectives are as follows:
Cash on cash returns of at least 6% to 8%
Debt reduction that provides an effective return on invested capital of 2% to 4%
Capital appreciation of 5% or more over the term of the investment
Combined compounded returns over the term of investment of 15% or more
Our performance against our targets has been outstanding to date.