Properties Diversified purchases structurally sound properties in thriving areas with value-add opportunities normally arising from; neglected maintenance, inadequate management and/or distressed owners. All assets are thoroughly examined to validate the future ability of reducing expenses, increasing rents while simultaneously providing safe and clean, housing and workspaces.
We understand that an increase in net operating income by correcting any inadequacies will not only increase cash flow to all partners, but also force appreciation; permitting properties to be refinanced with long-term, fixed rate, fully amortizing agency debt. Refinancing, most importantly, unlocks equity and allows the withdrawal of most, if not all of the limited partners’ initial contributions.
Normal renovation projects necessitate 3–12 months; with more stabilized assets requiring minimal time while larger projects demand upwards of a year to complete; all capital improvements, leasing, expense efficiencies and management transitions. Upon stabilization; net operating income (NOI) and value will substantially increase. Our firm will season the stabilization for 12-24 months before refinancing or divestiture.
Assets held for the long-term will benefit from not only our in-house asset management team but also from our property managers. We utilize the best third party property managers with verified track records of managing similar property types in the immediate area. Our on-site managers are owner-minded and believe in; minimizing turnover, maximizing income while maintaining the quality standards we employ in of all of our properties.
Strategy After Repositioning:
Refinancing and extracting our Limited Partners’ initial investment; once significant value has been created
Disposition(Sell) is a possibility, during optimal market conditions, to capture price premium (for tax efficiency, there is a minimum hold period of 36 months)