We pursue an opportunistic investment approach that seeks to identify “off-market” deals with motivated mom and pop sellers who own underperforming assets or assets that can be transformed through a value-add approach. With a focus on capital preservation and risk-adjusted return, we seek investments that generate immediate cash yields with significant additional growth potential.
Our investment strategy principles:
Opportunistic Deployment of Capital. We utilize our expertise in asset valuation in order to provide our investors with secure cash flow and capital appreciation through the opportunistic deployment of capital. We believe the current dislocation in the capital markets will provide tremendous opportunities in the coming years.
Building a Recession Resistant Portfolio. We target selected geographic markets with the objective of acquiring high quality, recession-resistant assets at significant discounts to replacement costs. This “value-add” investment strategy focuses on assets in demand driven/supply constrained markets.
Our Value Add Approach
During the turnaround stage, we will stabilize the park, recapture the loss-to-lease, lower expenses, and reduce vacancy. We are typically able to accomplish this feat within 18-24 months. At the outset, our team allocates the capital necessary to complete deferred maintenance projects and get each park operating at peak efficiency. The goal is to inject minimal capital for maximum effect.
Once we have improved the community’s aesthetics, residents are more than happy to pay a slightly higher monthly cost to receive a significantly better living experience. At that point, we raise rents to just below the local market value.
The immediate aesthetic improvements in the community can be very impactful, often kicking off a virtuous cycle of resident pride of ownership where homeowners clean up their own property and demand the same from their neighbors. This provides long term value to both the residents and our bottom line.