“Since 2005, an average of 804,000 new rental households per year have been created compared to just 75,000 per year from 1990-2004. That’s a stunning annual increase of 1,040%, inverting the ratio of homeowner/rental household formation to 25/75 from its historic ratio of 65/35”
– HUD and UD Census Bureau
Our Investment Criteria:
• Class B/B- properties in secondary markets.
• Workforce housing, 150 units+ (prefer 200-400), late 80’s vintage or newer.
• 90% occupancy or better. Cap rates 5.5-7%.
• Value-add deals, typically invest $5k-$15k per unit to upgrade and looking for monthly rent increases $100-$150 per unit.
• Purchase price $10mm-$40mm. Equity $3-$10mm per deal.
• Open to JV and partnership
At Acuity, our core real estate strategy involves identifying and acquiring commercial multifamily properties, with an emphasis on workforce housing in robust markets. Our Metropolitan Statistical Area (MSA) analysis concentrates on metrics of positive employment and population growth, strong infrastructure, diversified local economy and a favorable business climate. We typically review over 200 deals a year, visit and underwrite over 100 properties looking for healthy operating metrics and value-add opportunities before adding to our portfolio.
Acuity Partners strives to help you and your family achieve multi-generational wealth by offering investments in commercial multifamily apartments. Our objective is to identify projects that will provide current cash flow, preservation of capital, and tax-efficient capital appreciation. We hope to meet our objective by acquiring stabilized Class B properties in secondary markets that may be considered “value-add” opportunities.
As sponsors we take pride in our stewardship and confidently invest alongside our clients. We effectively finance these properties through syndicated equity and debt. Our investors benefit by pooling together their financial resources to acquire 150-500 unit properties that otherwise would be out of the scope of a single individual investor. Our strategy involves careful planning, a stringent due diligence process, and patience.