Multi Family Capital Partner’s core mission of protecting our investment partners’ capital begins with our sole focus on multifamily properties. The firm’s strategy focuses on improving Class B & C apartment communities in secondary and tertiary markets nationwide. Historically, multifamily has been the least volatile real estate asset class during downturns while still offering strong upside potential during upcycles. Within multifamily, Class B & C provides one of the most attractive investment opportunities due to the imbalance between the strong and growing demand and limited new supply of these units.
MARKET SEGMENTS
Age: The 18-35 year old market segment is 22% of the U.S. population
Income: Renters who earn $40,000 or more annually
Price: Where rent is 30% or less of the median income
Retiring Baby Boomers are scaling down and enjoying maintenance free multifamily living
PROPERTY CRITERIA
Multifamily residential apartments
Pitched roof construction preferred
Price: Where rent is 30% or less of the median income
Occupancy above 80% with the exception of properties that require renovation, providing properties are well located and present value-add opportunities
TARGET VALUES
Size and Price: 50+ units in the $4MM – $50MM range
Returns: 7-10% Cash on Cash, Minimum Debt Service Coverage ratio of 1.25
Type: C- to B+ properties located in C- to A areas
Property Vintage: 1975 or newer
Location: Emerging market areas with indicators for strong near and long-term economic growth
Acquisition Practices
Multi-Family Capital Partner’s, LLC takes pride in building relationships with local listing brokers to get their “pocket listings” and access to other Bank Owned Properties (REO). Our searches include soliciting owners directly instead of waiting for properties to come to market.
Investment Discipline
Asset selection involves a systematic, routine evaluation to identify favorable demand characteristics, i.e., job and population growth, demographic shifts, supply absorption rates and positive local legislation.
Value-Add Strategy
Think of it as a business rather than a building. The more income it generates, the more it is worth. When we purchase an apartment complex, we are looking for specific opportunities to increase the cashflow in different areas. These are called “Value Plays” or “Value Adding Components”.
MULTIVALUE PARTNERS REAL ESTATE INVESTMENTS
Enjoy passive real estate income without the hassle of management.
