Our Investment Thesis.
Our Mission.
We believe real estate should be a force for economic mobility.
That’s why we’re on a mission acquire $1.0 B in real estate AUM the next decade with an indelible positive impact on our world as a Lead Sponsor.
As an owner/operator, we strive to revitalize communities serving workforce tenants in our acquisition and development of mixed-income multifamily assets across the Southeast U.S.
Our Investment Focus: Build-to-Rent & Workforce Housing.
In 2024, our primary investment focus is the acquisition of existing, cash-flowing workforce housing and build-to-rent assets as a Lead Sponsor.
Our secondary focus is build-to-rent development across well-located land.
Workforce Housing (Multifamily)
Acquisition Criteria
Asset Class: Workforce Housing / Multifamily
Vintage: Class A- to C+, 1990 or newer age
Product Type: Mid-Rise and Garden
Investment Strategy: Core-Plus, Light Value-Add, Affordable Preservation, Distressed Asset (Loan & REO Purchases)
Unit Count: 100+ units per community
Additional criteria:
Operational asset with 75%+ current occupancy
Going-in capitalization rate with positive leverage
Existing clubhouse and community amenity package a plus
Build-to-Rent Development
Development Criteria
Asset Class: 10 - 50 Usable Acres of Land
Construction Type: Build-to-Rent (BTR) / horizontal multifamily community development
Potential Units: 40 - 300 units per community / 4-6 units per acre
Pricing: Land priced for all-in 8.0%+ Project Yield on Cost (YOC)
Additional land/site criteria:
Shovel-ready with available utilities preferred
Easy ingress and egress access
Within 10-20 min commute to major job centers and market anchors
Good nearby public and charter school options
Ability to set single plat / tax folio for each unit
Build-to-Rent Acquisitions
Acquisition Criteria
Asset Class: Build-to-Rent (BTR) Community / Single-Family Rental (SFR) Subdivision
Vintage: Class A- to B+, 2010 or newer age
Product Type: Townhome (Attached) or Single-Family Homes (Detached) contiguous communities
Investment Strategy: Core-Plus, Lease-Up
Unit Count: 30+ units per community
Additional criteria:
Full occupancy not necessary. Acquisition of assets just prior to Certificate of Occupancy (TCO) or early in Lease-Up period encouraged
Acquisition price below Appraised Replacement Cost
Contiguous community preferred over Scattered Site portfolios
Single-Plat / Tax Folio per unit preferred
Existing clubhouse and community amenity package a plus, or adjacent accompanying land available for community amenity development
Our Value-Add Strategy.
Doing well by doing good.
We fundamentally believe community impact and outsized investor returns can go hand-in-hand. They do not need to be mutually exclusive.
Across all verticals, we create value through the following strategies:
Robust community programming with local non-profit partners, including community events, financial literacy, and social services right-sized for each tenant
Smart unit upgrades, including affordable luxury in-unit finishes plus tech-enabled smart locks, thermostats, central HVACs, appliances and in-home security systems
Great community upgrades, including clubhouse amenities, electric vehicle charging, solar installs and adequate lighting
Optimized capital structure, making best use of fixed-rate government senior financing (Fannie Mae, Freddie Mac and HUD), Preferred Equity, Joint Venture Common Equity, Seller Carry, Property Accessed Clean Energy (PACE) financing and Local Government Subsidies, where possible
Mixed-income tenant demographics, right sizing individual and community-based Section 8 / Housing Assistance Program vouchers for low-income tenants, market rate units and corporate/short-term rental set-asides
Our Target Markets.
We use best-in-class analytics to target mixed-income multifamily opportunities meeting our rigorous investment criteria across our Core Geography of the the Southeast U.S., America’s economic growth engine.
Our Core Geography.
Primary Investment States:
Florida
Georgia
North Carolina
South Carolina
Tennessee
Secondary Investment States:
Arkansas
Virginia
Louisiana
Maryland
Mississippi
Oklahoma
Texas
Within our Core Geography, we only invest in a select few “growth corridor” sub-markets with the right recipe for long-term, sustainable growth:
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We focus on small to large-sized cities within our Core Geography that have experienced population growth of 7 - 15%+ over the last 20 years.
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We focus on growth corridors that have experienced strong 35%+ median household income growth over the last 20 years.
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We focus on growth corridors with strong median single-family home value growth of 55%+ growth over the last 20 years.
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We only invest in neighborhoods that that have had significant drops in reported crime rates over the last 15 years, as identified by public law enforcement and municipal data.
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We invest in growth corridors with recent annualized job growth of 3.0%+ over the last 12 months.