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Strategy

Our value-add platform is grounded in sound investment strategies and sensible underwriting principles. The company's strategy focuses on improving Class B & C apartment communities and selecting new multi-family projects that fall into certain categories in the secondary and tertiary markets nationwide.
We constantly seek new acquisition opportunities in our target markets. Our strong deal-sourcing relationships grant us preferred access to available properties and portfolios, often before they come to market.

Primary Focus

Acquisition Criteria

The following criteria are used to identify undervalued multifamily properties for acquisition, value optimizations, management, and disposition.

MARKET SEGMENTS

  • Age: The 18-35-year-old market segment is 22% of the U.S. population

  • Income: Renters who earn $40,000 or more annually

  • Price: Where rent is 30% or less of the median income

  • Retiring Baby Boomers are scaling down and enjoying maintenance-free multifamily living

PROPERTY CRITERIA

  • Multi-Family residential apartments

  • Pitched roof construction preferred

  • Occupancy above 80% with the exception of properties that require renovation, providing properties are well located and present value-add opportunities 

  • Opportunistic New Construction Multi-Family 

TARGET VALUES

  • Size and Price: 20 - 2000 units in the $10M – $500M range

  • Returns: 7-10% Cash on Cash, Minimum Debt Service Coverage Ratio of 1.25

  • Type: C- to B+ properties located in C- to A areas. Opportunistic Class A

  • Vintage: 1975 or newer

  • Location: Emerging market areas with indicators for strong near and long-term economic growth

Value Add

WE CAPITALIZE ON VALUE PLAYS

Owner self-management leads to mismanagement.
Management companies are poorly supervised.
Maintenance that has been put off
Vacancies are plentiful.
Rents that are below market
At FOXALPHA Ventures, we use the following value-add strategies:

Improve curb appeal by adding landscaping, dog parks, and carports, among other things. When a property is in better condition and offers facilities, residents are willing to spend more.
Buying a property at a discount of 10% or more from current market rents. This provides us the option to raise rents while also increasing the property's worth.

Proactive management and robust communication among functional teams ensure swift and thorough execution of our business plan with each acquisition.

Services

Guarantor, Key Principal, Sponsor, Co Sponsor, Full Capital Stack.

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