Acquisition Criteria

Overview

We create real estate investment opportunities for individuals

Aii seeks multifamily investments from the following categories:

  • Value Added Opportunities: Underperforming undercapitalized assets; Acquisition and re-positioning of well-located, older properties or newer properties that underperform due to management or ownership neglect.
  • Recovering/Emerging Market Opportunities: Assets in markets with a diversified job base & strong long-term economic fundamentals and assets with clear discounts to replacement costs.
  • Special Situation Opportunities: Creative financing situations or loan assumptions/restructurings, motivated and distressed sellers, REO and portfolio transactions.

Target assets will typically have some or all of the following characteristics:

  • A purchase price 30 - 40% lower than the value at the peak of the market.
  • A purchase price below replacement cost, sometimes 30% or more.
  • A capitalization rate of 1 - 2% higher than the cost of acquisition debt.
  • Net cash returns to equity of 7 - 8% in year one, growing to 10 - 12% or higher during the ownership period.
  • With appreciation from inflation and improved operations, invested capital is expected to double in value - consistent with Aiiís performance of Apartments purchased in the 1990ís.