Our Three-Pillar
Investment Strategy
We take great pride in our track record and the trust we have built with our investors as thoughtful stewards of their capital. This success is driven by the three pillars of our investment strategy.
Protection
Reduction
Resiliency
Protection
Pillar 1:
Specialize in Rental HousingPillar 2:
Invest Where People Want to Work and LivePillar 3:
Seek Inefficiencies Across the Market CycleHistorically Recession Resilient with Stable Long-Term Returns
Rental housing provides a fundamental, non-discretionary need: shelter.
It has delivered superior risk-adjusted returns relative to other asset classes over the past 30 years with low correlation.1
Tailwinds from Extended Housing Supply Constraints
4.3 million apartment units are needed nationally by 2035, over 330 thousand annually, to compensate for demand and the shortfall in construction.2
Home Buying Has Become Less Attainable
Due to rising interest rates and prices, the cost to own and maintain a home has grown higher than renting and sits higher than the prior peak of the mid 2000s housing market boom.3
Pillar 1:
Specialize in Rental HousingHistorically Recession Resilient with Stable Long-Term Returns
Rental housing provides a fundamental, non-discretionary need: shelter.
It has delivered superior risk-adjusted returns relative to other asset classes over the past 30 years with low correlation.1
Tailwinds from Extended Housing Supply Constraints
4.3 million apartment units are needed nationally by 2035, over 330 thousand annually, to compensate for demand and the shortfall in construction.2
Home Buying Has Become Less Attainable
Due to rising interest rates and prices, the cost to own and maintain a home has grown higher than renting and sits higher than the prior peak of the mid 2000s housing market boom.3
Pillar 2:
Invest Where People Want to Work and LiveIdentify Demographic Patterns
We employ data-driven analytics in an effort to identify demographic patterns that drive demand.
Pillar 3:
Seek Inefficiencies Across the Market Cycle- Development
- Lease Up
- Stabilized
- Value Add
- Direct Equity
- Preferred Equity
- Mezzanine Debt
- Special Situation Debt
- Conventional
- Affordable
- Private Wealth
- Institutional
- Urban Core
- Suburban
- Primary
- Secondary
- Garden
- Midrise
- High-Rise
- Build-to-Rent
- Physical Class A, B and C
- Location Class A, B and C
Execution of
a Dynamic Strategy
Opportunistic
Income Recovery and Growth
2004 - 2006
Purchased income-producing properties with depressed rents and occupancy.
- 18.3% Gross IRR
- 2.44x Equity Multiple
- 6 Properties
- 1,362 Units
Dangerous Valuation
2007 - 2008
Sat out irrational and flawed market.
- 0 Properties
Distressed Market
2009 - 2013
Purchased assets from distressed sellers at discounted values.
- 41.9% Gross IRR
- 3.82x Equity Multiple
- 6 Properties
- 2,232 Units
Value-Add
2014 - 2016
Purchased and renovated Class B and C properties with a large rental rate discount to nearby Class A product.
- 37.7% Gross IRR
- 3.61x Equity Multiple
- 8 Properties
- 1,546 Units
Cap Rate Inefficiency
2016 - 2019
Purchased assets in the Norfolk-Virginia Beach MSA trading at a perceived historic pricing discount to other cities.
- 39.3% Gross IRR
- 2.80x Equity Multiple
- 6 Properties
- 1,930 Units
Market Peak
2019 - 2022 Q1
Took advantage of excessive prices, high liquidity, and mispricing in the capital stack.
- 9 Properties
- 2,254 Units
Market Dislocation
2022 Q1 - Present
Distressed opportunities are appearing as the market begins to correct.
- 2 Properties
- 408 Units
Where We See
The Market Today
