Value Added Investment
AVP seeks to acquire, improve and operate existing multifamily assets in order to provide investors with a secure annual cash return on their capital, together with an opportunity to participate in medium and long-term real estate investment gains. To do this, we:
Buy Right: Acceptable Return for Acceptable Risk
- Take advantage of specialized knowledge in local market trends.
- Leverage reputation with owners and relationship with brokers to secure acquisition opportunities.
- Properly identify and evaluate variables that will generate return.
- Buy what we know: employ prudent underwriting based on extensive ownership, and local market, experience.
- Acquire properties at lower initial yields (cap rates) which we can reposition.
- Acquire properties at a discount to the replacement cost.
- Use balance sheet, experience, and relationship with lenders to obtain financing and negotiate favorable terms.
Increase Property Cash Flow
- Reduce expenses by implementing expense controls at the property level, leveraging in-house, regional property management capabilities, and using an existing property portfolio to enhance purchasing power.
- Reposition the property as needed.
- Manage the property more effectively in order to create strong occupancy.
- Roll rents to market.
- Implement disciplined, full-service asset management and project oversight. This includes escrow, tax, and insurance analysis.
AND THEREBY:
Generate Above Market Returns to Investors
- Constantly evaluate recapitalization and disposition opportunities.
- Monitor local real estate market conditions and analyze market data.
- Manage the disposition process while taking full advantage of a deep broker network and direct relationships with owners and institutions.
Acquisitions Criteria | |
Targeted Property Characteristics | |
---|---|
Property Types | Conventional multifamily in the East Bay. Student housing at UC Berkeley, UC Merced and UC Davis. |
Unit Target Size | Conventional: 15-75 units. Student housing: 25-250 beds. |
Vintage | Target of 1960 or later. |
Location | “A” and “B” locations only. Student housing: Walk to campus preferred. |
Capital Improvements | We look to undertake value added projects. |
Occupancy | We will take on properties that have weak occupancy and actively pursue management value added projects. |