Acquisition Criteria

The following criteria are used to identify undervalued multifamily properties for acquisition, value optimization, management and disposition.

MARKET SEGMENTS

• Age: The 18 to 34 year old market segment comprises 22% of the U.S. population
• Income: Renters who earn $35,000 and less annually
• The retiring Baby Boomers are scaling down and are enjoying carefree multifamily community living.

PROPERTY CRITERIA

• Multifamily residential apartments
• Roofs with pitched construction
• Minimum Occupancy 80% with the exception of properties that require renovation, providing properties are well located and present value enhancement opportunities

TARGET VALUES

• Size and Price: 100+ units in the $5MM – $15MM range
• Returns: 15-20% Cash on Cash, minimum Debt Service Coverage ratio of 1.5
• Type: C- to B+ properties located in C- to A areas
• Location: Emerging market areas with indicators for strong near and long-term economic growth