To add value to properties, we take a multi-pronged approach. Central to most plans is allocating sufficient investment capital to upgrade interiors and add amenities. In addition to the interiors, we typically update the properties curb appeal, and enhance operations at the property level through expense streamlining, cost reductions and capturing available organic rent growth.
Upon purchase we install carefully vetted day to day operations management while ensuring that there is careful oversight of property performance.
We capitalize our deals with a combination of LP equity and debt customized to the business plan established for each property. We invest our own money in each deal we do, and to have fully aligned interests with our investors in each deal we enter into.
Typically, we aim to substantially exit by the end of year three, either via a sale of the property or a refinance that either returns all or a substantial portion of investors equity.
Our acquisitions process creates a foundation for value by sourcing hundreds of opportunities prior to placing a deal under contract. Our thorough market analysis allows us to price risk and identify under priced and under-managed acquisitions. Working closely with our integrated property management, we evaluate properties, avoid pitfalls, and map out the path to success. With our strong understanding of both finance and business plan execution, we configure optimal capital structures to fit the business plan (hold period, capital expenditures, operations).
Our hands-on asset management allows us to buy confidently in situations that involve actually operating real estate, rather than simply owning a cash flowing asset. Our team has experience with challenging turnarounds and tough situations. We believe in delivering attractive stabilized assets through operations, rather than simple financial engineering or fundraising. Attention to each individual property helps raise revenue and lower costs; market-specific exterior and interior capital expenditures enhance appeal and drives NOI to deliver maximum proceeds at exit. Our team implements energy efficiency programs, optimizes staffing, and tightens margins to increase returns.
Continued contact with brokers and other market participants and our in-house capital markets staff positions us to source off-market deals while also keeping our finger on the pulse of market conditions. These help maximize exit value. We solicit opinions of value and evaluate refinancing options to determine the optimal exit strategy (e.g., sale, refinance) based on specific property and market conditions.