Multi-Family Real Estate

“Since 2005, an average of 804,000 new rental households per year have been created compared to just 75,000 per year from 1990-2004. That’s a stunning annual increase of 1,040%, inverting the ratio of homeowner/rental household formation to 25/75 from its historic ratio of 65/35”

Targeted Investor Returns and Advantages of Ownership

• Annual cash flows distributed to investors 6-8% (paid quarterly)
• Average IRRs 15%+/- annually through capital appreciation upon sale
• Equity build up overtime as loan principal is paid down from cash flow
• Use of leverage increases return on equity
• Tax efficient investment due to deal structure and depreciation pass-through
• Not correlated to other asset classes. Protects against stock market volatility

Our Investment Criteria:

• Class B/C properties in secondary markets
• Workforce housing, 150 units+ (prefer 200-400), late 80’s vintage or newer.
• 90% occupancy or better. Cap rates 5.5%-7%
• Value-add deals, typically invest $5k-$15k per unit to upgrade and looking for monthly rent increases $100-$150 per unit
• Purchase price $10mm-$40mm Equity $3mm-$15mm per deal
• Open to Co-Sponsorship opportunities

At Acuity, our core real estate strategy involves identifying and acquiring commercial multi-family properties, with an emphasis on workforce housing in robust markets. Our Metropolitan Statistical Area (MSA) analysis concentrates on metrics of positive population, employment and income growth, strong infrastructure, diversified local economy and a favorable business climate. We typically underwrite/review over a thousand deals a year looking for healthy operating metrics and value-add opportunities that can be acquired at favorable prices.

Our strategy will help you and your family create multi-generational wealth. Our objective is to identify projects that will provide current cash flow, preservation of capital, and tax-efficient capital appreciation. We hope to meet our objective by acquiring stabilized Class B/C properties in secondary markets that may be considered value-add opportunities.

As sponsors we take pride in our stewardship and confidently invest alongside our clients. We effectively finance these properties through syndicated equity and debt. Our investors benefit by pooling together their financial resources to acquire 150-500 unit properties that otherwise would be out of the scope of an individual investor. Our strategy involves careful planning, a stringent due diligence process, well-executed asset management plan and patience.