Optimized for Agile Execution
Rental Housing Operator
- Tactical execution and oversight of business plans
- Focus on maximizing financial health of assets
- Transactions, asset management, and construction management
Investment Manager
- Capital formation and portfolio construction
- Focus on maximizing investment returns
- Portfolio management, reporting, and investor relations
We Remain "Asset-Light" by Outsourcing
Management
Contracting
Administration
- Focus on higher ROI: investment execution, navigating the market, and business strategy
- Curate third-party specialists as force multipliers tailored to specific needs
- Quickly adjust execution strategy ahead of market
- Better alignment with LPs by eliminating GP reliance on third-party fees
Differentiated
Investment Strategy
Singular Focus and Expertise in Rental Housing
- Rental housing provides a fundamental, non-discretionary need: shelter
- Tailwinds from extended housing supply constraints
- Our sector specialization leads to superior execution
- Downside Protection
- Low Beta
Invest in High-Growth Areas
- Targeting favorable demographic trends through population and job growth
- Growth markets with deep buyer pools create high exit liquidity
- Current data points to Sun Belt and Mid-Atlantic
- Secular Growth
Seek Inefficiencies Across the Market Cycle
- Pursue mispriced, mismanaged, or misunderstood assets
- Nimble structure allows us to act quickly and decisively when market windows open
- Leverage proprietary data models to identify pricing dislocations and capital stack inefficiencies
- Cyclical Opportunity
- Upside Potential
- High Alpha
Proprietary Edge: A Data-Driven Framework
to Identifying Relative Value
Broad Execution Capabilities
Across Rental Housing
- Core/Core+
- Value-Add
- Opportunistic
- Equity
- Pref/Mezz
to Uncover
Relative Value
- Call A, B, and C
- Renter Demographic
- Asset Life Cycle
- Primary/Secondary/Tertiary Cities
- Urban/Suburban Sub-Markets
- Core/Core+
- Value-Add
- Opportunistic
- Equity
- Pref/Mezz
- Debt
- Class A, B, and C
- Renter Demographic
- Asset Life Cycle
- Primary/Secondary/Tertiary Cities
- Urban/Suburban Sub-Markets
Why U.S. Multifamily?
Why Sun Belt and Mid-Atlantic?
Why Now?
Historically 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
Historically 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
Identify Demographic Patterns
We employ data-driven analytics in an effort to identify demographic patterns that drive demand.
Historically 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
Historically 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
Historically 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
Execution of
a Dynamic Strategy
Opportunistic
Income Recovery and Growth
2004 - 2006
Purchased income-producing properties with depressed rents and occupancy.
Dangerous Valuation
2007 - 2008
Sat out irrational and flawed market.
Distressed Market
2009 - 2013
Purchased assets from distressed sellers at discounted values. Also invested preferred equity during a liquidity crunch to produce superior risk-adjusted returns.
Value-Add
2014 - 2016
Purchased and renovated Class B and C properties with a large rental rate discount to nearby Class A product.
Cap Rate Inefficiency
2016 - 2019
Purchased assets in the Norfolk-Virginia Beach MSA trading at a historic pricing discount to other cities.
Defensive Market Peak
2019 - 2022 Q2
Shifted to defense by protecting basis through development, securitizations, and preferred equity and rotating away from Class B/C to Class A in low supply areas.
Rate-Driven Downturn
2022 Q2 - Present
Interest rate-driven market downturn while long-term multifamily fundamentals remain stable; strong exits delivered in challenging market.
Where We See
The Market Today
