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
For years, institutional investors have used commercial real estate to enhance yields in a yield-starved market. Real estate can offer predictable cash flows, build equity through future capital appreciation of the assets, tax benefits, and may act as a hedge against inflation and stock market risk. Our platform is designed to provide individual investors the same benefits.
We collaborate with our clients to provide a transparent investment process, enabling more efficient decision-making. Our direct access allows clients to invest alongside experienced operating partners who have a proven track-record of delivering attractive risk-adjusted returns.
This approach differs from the large brokerage firms who typically only offer these types of investments through a fund platform or in publicly traded REITs. Similarly, most of the well-known real estate funds require a minimum investment of $1 million of more which does not appeal to the typical investor. Acuity Partners utilizes its vast network of commercial brokers, lenders, other sponsors/owners, and legal and accounting professionals to identify what we believe are best of breed transactions.
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 over a 1000 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, value-add Class B/C properties in secondary markets.
Purchase Date: July 2016 – $11,800,000
Sold Date: March 2020 – $17,200,000
Property Class: B-, Units: 212
Purchase Date: February 2019
Property Class: B-, Units: 164
Purchase Date: December 2018
Property Class: A Luxury, Units: 152
Purchased Date: December 2016 – $3,150,000,
Sold Date: July 2018 – $5,000,000
Property Class: C-, Units: 118
Purchase Date: February 2018
Property Class: B, Units: 270
Purchase Date: June 2017
Property Class: C, Units: 254