Our strategy in the current environment is to pursue well located multifamily properties in markets with a demonstrated ability to generate employment, and which contain significant barriers to new construction.
To take advantage of these evolving market dynamics and to meet our clients’ varying risk profiles, GRA has created two distinct approaches to investment in Multifamily Housing:
- Asset Preservation Strategy (APS) seeks those properties that are essentially stabilized and have minimal capital requirements beyond the purchase price. These properties offer solid cash on cash returns from day one with minimal risk.
- Value Enhancement Strategy (VES) targets distressed properties, which would typically be B or C assets that are undercapitalized, undermanaged, and may be in or facing foreclosure. These properties typically have higher vacancy rates and suffer from significant deferred maintenance. While this type of property offers significantly higher return potential than the core properties, this potential carries with it a commensurate level of risk.