Approach & Acquisitions
Deep sourcing. Day-one math.
We spend more time finding and checking a deal than most groups spend closing one. The result is a portfolio of Class B+ properties we would be comfortable owning at the price we paid, on the day we paid it.
How we source
Five steps, done thoroughly.
- 01
Search
We track ownership, loan maturities, tax histories and property condition across our markets, then reach owners directly. Many of our purchases start with a letter or a phone call.
- 02
Walk it
Before any offer, we walk the property, the block and the competing buildings. We talk with leasing staff, neighbors and local managers about what the numbers leave out.
- 03
Underwrite
In-place rents. Real expense history. Taxes reassessed at our price. Insurance quoted before we commit. Capital needs priced from inspection.
- 04
Offer
A clear price, simple terms and a realistic timeline. We do the work up front so our offer holds through closing.
- 05
Own
We take over with a first-100-days plan for repairs, staffing and resident communication, and we plan to hold.
Makes sense on day one
Every deal has to pass five tests at closing.
Rent growth and refinancing can improve a good purchase. We make sure the purchase is good before counting on either.
- Cash flow at in-place rentsCurrent rents cover debt service with room to spare.
- Deferred maintenance priced inRoofs, boilers, parking and units are inspected and costed before the offer.
- Taxes at our priceWe model the reassessment that follows a sale.
- Rents the neighborhood supports todayOur base case uses comparable rents that exist now.
- Conservative leverageDebt sized so the property can weather a soft year.
Acquisition criteria
Class B+ buy box- Asset
- Class B+ multifamilyGarden and mid-rise communities
- Size
- 50 to 300 unitsLarger portfolios considered
- Vintage
- 1980 to 2005Quality construction, sound systems
- Price
- $5M to $40MPer property
- Occupancy
- 85% or higherStabilized or near-stabilized
- Business plan
- Light value-addOperations, unit refresh, deferred maintenance
- Markets
- Midwest priorityPlus NJ, PA, MD, OH, DE, NC, TN and VA
- Sourcing
- Off-market and directOwners, estates, partnerships and brokers we know
- Location
- Steady, working neighborhoodsNear employers, schools, retail and transit
Criteria shown are illustrative for this prototype.
For owners and brokers
What to expect from us.
Decision makers
You talk directly with the people who approve the purchase.
A fast read
We tell you quickly whether a property fits, and why.
Discretion
Conversations stay private. Your residents and staff hear nothing until you decide.
Certainty
Diligence happens early, so the price we offer is the price we close at.