We are opportunistic investors. To date, we have focused mostly on Multifamily apartment complexes that are typically “B” or “C” grade properties (based on age and/or condition) but represent an opportunity to serve at the top end of their class within their market – based on 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. In our multifamily investments, we generally focus on properties that range between 50 and 250 units, were built in the early 80s or later and range in price between $2.0 million and $15.0 million.
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