The firm seeks to acquire value-add multifamily properties in secondary markets throughout the USA.
Beechstone Capital is a NY-area based commercial real estate investment firm. The company was founded by its three key principals Charles Shemano, Elliot Singer and Akiva Feinsod. The firm’s principals bring significant experience in the multifamily space as well as private equity and business management.Our approach is guided by leveraging deep relationships within the industry in strategic markets. These relationships allow us to uniquely identify and carefully vett the deals we select. We employ some unique tools in our underwriting to ensure that the investments we pursue are geared for outsize returns.
Our approach is predicated upon cautious, disciplined investing combined with the agility necessary to move decisively to secure unique assets when we identify superior opportunities.
We have nurtured close relationships with numerous brokers and maintain a wide network of industry professionals in strategic markets.
In addition to the traditional sale processes, we pursue alternative approaches in our asset acquisitions, and we maintain relationships with asset managers and principals which often allows us to pursue un-marketed transactions.
The pandemic has accelerated the growth of secondary markets, as more corporations are allowing employees to work remotely, and pandemic-fueled lockdowns have given many Americans a desire for more space than they can afford in primary cities.
Secondary markets typically have significantly lower costs of living than primary markets, and not surprisingly have seen an influx in population in recent years. Austin, TX, for example, saw growth of nearly 20% from 2010-2016. Charlotte, NC, grew by more than 15% during that time. The same can be said for Denver.
We believe that workforce housing is a strong risk-adjusted value compared with newer builds. Class A deals suffer from new supply competition and are vulnerable to economic downturns and substitution by affluent lifestyle renters. In contrast, workforce housing has seen stronger rent growth and is stickier in downturns due to renter-by-necessity tenants and lack of new affordable supply. Ongoing house price appreciation drives a widening rent-buy gap, driving future multifamily rental demand.