Acquisition Criteria
- Well located low-rise multi-family communities
- 250 to 350 units per community (on average); typically 1970’s – 1980’s construction
- Residents that exhibit a moderate household income profile (US$20K – US$40K)
- Employed in retail and service industries (least likely to be unemployed)
- Immigrants, newlyweds/starting out, renters by necessity
- No down payment saved, no ‘buyers’ mentality
- Properties that currently exhibit various levels of financial, ownership, and/or physical distress
- Ineffective property management (absentee owner / operator)
- Significant deferred maintenance
- Financially distressed (occasionally acquired out of liquidation / insolvency / foreclosure)
- Combined acquisition and rehabilitation pricing that represents a significant discount to replacement cost (less than 50%)
- Properties must have specifically identifiable means to enhance cash flow and valuation
