831 Black Rock Turnpike, Fairfield CT 06825 | (203) 418-7472 | info@granatarealtyadvisors.com
Granata Realty Advisors (GRA) believes the best risk-adjusted returns in Multifamily Real Estate (MF) in today’s markets lie with our ASSET PRESEVATION STRATEGY (APS). Broadly defined, this strategy seeks to purchase multifamily assets which will produce consistent returns.The primary approach to APS is to identify and minimize the inherent risk in Real Estate Investment. Toward this end, APS seeks to minimize risk due to:
ASSET CLASS - MF is historically subject to less volatility and smaller swings than other asset classes within real estate cycles and is considered an excellent hedge against inflation.
VACANCY - Identifying stabilized properties with good historical occupancy within established MF markets provides historical reference for vacancy as correlates to economic prosperity and downturn within that market.
RENTAL RATE - Identifying properties with historical performance within established MF markets provides a solid perspective on economic fluctuations and resultant effects on rental rates lending reliability to underwriting projections.
CAPITAL - Selection of assets with newer construction and/or recent capital renovations with minimal deferred maintenance or immediate capital needs, in conjunction with thorough professional physical due diligence, can quantify deferred maintenance as well as future capital requirements for replacement reserves.
FINANCING - Placement of conservative financing (minimum 7 year term) and conservative leverage (maximum 80% Loan To Value and minimum 1.25 Debt Coverage Ratio) provides a comfortable market growth period and insulation from cash flow challenges.
ASSUMPTIONS - Underwriting property analysis utilizing conservative assumptions based upon professional physical, financial and market research allows for risk adjustment to yield reliable returns.
GRA underwrites properties based upon the APS assuring proper reserves to resolve any existing deferred maintenance or capital needs and provide sufficient replacement reserves to properly manage rental turns and predictive repair and replacement.