Acquisition Criteria
- Product Characteristics
- Existing product built since 1980
- 200+ units
- Garden style or in-fill mid-rise
- Development or redevelopment
- Minimum current 7% unleveraged
- Leveraged IRR in low to mid-teens
- 3 to 7 year hold
- Discount to replacement cost
- 5% minimum equity, max 80% leverage on total cost
- Barriers to entry for new development
- Solid employment base/growth history
- Solid demographics, poised for growth
Return Expectations
Market Interest Differentiators
- Location Preferences
- Population profiles exceeding 1,000,000
- In-fill or established suburban locations
- Close to employment centers
- Fee simple interest preferred
- Value added, promoted structures
- Will assume debt when maturity is within the hold period
- Supply/demand imbalance
- Minimal development constraints
- Low or no growth
Ownership Profile
Low Market Interest Characteristics