Acquire below replacement cost
We buy existing communities for less than it would cost to build them today. That gap is the first margin of safety, and it is the one no operator can create later.
Value-add multifamily in the Southeastern United States.
Value-add workforce multifamily in the Southeast: what we buy, what we refuse to buy, how we finance it, and how the money comes back to you.
Acquisition criteria
Properties outside these parameters are not underwritten.
100–300Units per property
1985–2010Year built
B / B−Asset class
3–5 yrsTarget hold period
- Stabilized occupancy above 85% at acquisition — we buy income, then improve it.
- Sub-market rent gap of 12%+ between in-place rents and renovated comparables within two miles.
- Fixed or rate-capped agency debt with a term that outlasts the business plan by at least 24 months.
- Individually metered utilities or a credible path to resident-paid utility recovery.
- A market we already operate in, or one we have visited on the ground at least four times.
The business plan
The same five stages are applied to every asset. None of them depend on rent growth or cap-rate compression.
Renovate on turnover
Units are upgraded as residents move out — never by displacing anyone. Flooring, fixtures, appliances, counters, paint. Typical spend of $6,000–$9,000 per unit against a $150–$250 monthly rent premium.
Professionalize operations
New management, real leasing systems, renewal discipline, delinquency control, and bid-out contracts. Most acquired properties are under-managed before they are under-improved.
Recover expenses and amenities
Utility billback, parking, pet, and package programs, plus targeted amenity upgrades that residents will actually pay for. Small line items, compounding into net operating income.
Refinance or realize
Once income is stabilized at the new level, we either refinance to return capital while retaining ownership, or sell into the strongest available bid. The choice is made on the numbers, never the calendar.
Apartment values are a function of net operating income divided by the market capitalization rate. At a 5.5% cap rate, every additional $1,000 of annual NOI adds roughly $18,000 of property value — which is why operations, not speculation, drive our returns.
Target markets
People and employers are moving to the Southeast faster than housing is being built for them. We invest where that gap is measurable at the submarket level — not where it makes a good headline.
Atlanta
Deep employment base across logistics, film, healthcare, and finance, with sustained in-migration and a large renter-by-necessity population in the northern and eastern suburbs.
Charlotte & Raleigh
Banking, technology, and research-triangle employment growth, paired with some of the strongest household formation rates in the country.
Greenville & Charleston
Advanced manufacturing and port activity supporting stable, wage-earning renter demand at the price points we own.
Nashville & Chattanooga
Diversified healthcare and logistics employers, no state income tax, and continued corporate relocation into the metro.
Huntsville & Birmingham
Federal, aerospace, and medical employment that behaves defensively through cycles — and pricing that still clears our yield test.
Jacksonville & Tampa
Population growth and a shortage of quality workforce product, underwritten with explicit insurance-cost stress given Florida's premium environment.
Market selection is reviewed annually. We will exit a market entirely rather than force a deal to stay in it.
Distribution waterfall
Our compensation is structured so that we only do well after our investors have. Here is the order in which every dollar of cash flow and sale proceeds is distributed.
Return of capital
On a capital event, invested principal is returned to limited partners before any profit is split.
8% preferred return
Limited partners receive a preferred return on unreturned capital, accrued and paid before the sponsor participates.
70 / 30 profit split
Remaining profits are split, with the majority to limited partners. Splits and any hurdles are disclosed in full in each offering's operating agreement.
Sponsor co-investment
The sponsor invests personally in every offering on the same terms as limited partners — the fastest way to align a manager with the people who funded him.
Acquisition, asset management, and disposition fees are disclosed line by line in each private placement memorandum. If a fee is not written in the documents, it does not exist.
Principal risks
Each of the following has materially affected this asset class within the last five years. These risks are managed; they cannot be eliminated.
Interest rates and refinancing
Higher rates raise borrowing costs and compress values. We mitigate with fixed or capped debt and terms that outlast the plan — but a refinancing window can still close.
New supply
A wave of deliveries in a submarket can stall rent growth. We underwrite the construction pipeline within three miles and discount rent growth accordingly.
Operating cost inflation
Insurance, taxes, and payroll have repriced sharply. We budget above trend and re-assess property tax exposure at every reassessment cycle.
Illiquidity
There is no secondary market for your interest. If your circumstances change mid-hold, you cannot sell. This is the real cost of the tax treatment and control you gain.
Execution risk
Renovations run over. Managers underperform. Business plans slip. We report it in the quarter it happens rather than the quarter it resolves.
This summary is not a complete statement of risks. Each offering's private placement memorandum contains the full risk disclosure, which you should read before investing. Read our full disclosures.
Review the strategy in full.
The strategy is documented in full and is intended to be reviewed with your own tax and legal advisors.