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.