OUR STRATEGY
Acquisition Criteria
We target undervalued multifamily properties for acquisition, optimization, and management using the following criteria
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
type: Multifamily residential apartments
Occupancy : 80%+ occupancy with the exception of properties that require renovation, providing properties are well located and present value-add opportunities
TARGET VALUES
Size and Price: 50+ units in the $4MM – $50MM 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
Property Vintage: 1970 or newer
Location: Emerging market areas with indicators for strong short-term and long-term economic growth
Acquisition Criteria
The following criteria is 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
type: Multifamily residential apartments
Occupancy : 80%+ occupancy with the exception of properties that require renovation, providing properties are well located and present value-add opportunities
TARGET VALUES
Size and Price: 50+ units in the $4MM – $50MM 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
Property Vintage: 1970 or newer
Location: Emerging market areas with indicators for strong short-term and long-term economic growth
Characteristics of Emerging Markets
WE FOCUS ON IDENTIFYING EMERGING MARKETS—AREAS WITH STRONG POTENTIAL FOR GROWTH AND HIGH RETURNS ON INVESTMENT:
In-Migration: More People moving in, rather than leaving.
job growth: Jobs being created and companies relocating to the area.
rising values: increasing rents and property values
supplly absorption: Markets starting to absorb oversupply
Pro - Business policies: Local government dedicated to attracting jobs
OUR RESEARCH APPROACH
Job Growth Report
Population Growth STUDIES
Path of Progress Reports
Local Economic Reports & Trends
Chamber of Commerce Reports
Characteristics of Emerging Markets
WE FOCUS ON IDENTIFYING EMERGING MARKETS—AREAS WITH STRONG POTENTIAL FOR GROWTH AND HIGH RETURNS ON INVESTMENT:
In-Migration: More People moving in, rather than leaving.
job growth: Jobs being created and companies relocating to the area.
rising values: increasing rents and property values
supply absorption: Markets starting to absorb oversupply
Pro - Business policies: Local government dedicated to attracting jobs
OUR RESEARCH APPROACH
Job Growth Report
Population Growth STUDIES
Path of Progress Reports
Local Economic Reports & Trends
Chamber of Commerce Reports
And many more factors
Acquisition Practices & due dilligence
AT BELLTORI, EACH MULTIFAMILY INVESTMENT UNDERGOES A RIGOROUS ACQUISITION PROCESS TO ENSURE THE SUCCESS OF OUR INVESTMENT STRATEGIES. WE CONDUCT THOROUGH DUE DILIGENCE ON EVERY PROPERTY TO VERIFY ITS PHYSICAL AND LEGAL STATUS, CONFIRM VALUATIONS, AND ENSURE THE INVESTMENT STRATEGY IS ACHIEVABLE
FINANCING STRATEGY
DURING THE EARLY ASSET EVALUATION PHASE, WE DEVELOP A TAILORED DEBT AND EQUITY FINANCING PLAN BASED ON FACTORS SUCH AS:
PROPERTY TYPE
RENOVATION REQUIREMENTS
EXPECTED HOLD PERIOD (TYPICALLY 5–10 YEARS)
INVESTOR OBJECTIVES
INVESTMENT DISCIPLINE
WE USE A SYSTEMATIC APPROACH TO EVALUATE ASSETS, FOCUSING ON:
FaVORABLE DEMAND CHARACTERISTICS: JOB AND POPULATION GROWTH, DEMOGRAPHIC TRENDS, SUPPLY ABSORPTION RATES, AND SUPPORTIVE LOCAL LEGISLATION.
MARKET CONSTRAINTS: PRIORITIZING MARKETS WITH SUPPLY CONSTRAINTS WHILE AVOIDING AREAS SHOWING SIGNS OF OVERSUPPLY, SUCH AS SURPLUS LAND, ZONING CHANGES, OR INCREASED BUILDING PERMITS.
Acquisition Practices & due DILIGENCE
AT BELLTORI, EACH MULTIFAMILY INVESTMENT UNDERGOES A RIGOROUS ACQUISITION PROCESS TO ENSURE THE SUCCESS OF OUR INVESTMENT STRATEGIES. WE CONDUCT THOROUGH DUE DILIGENCE ON EVERY PROPERTY TO VERIFY ITS PHYSICAL AND LEGAL STATUS, CONFIRM VALUATIONS, AND ENSURE THE INVESTMENT STRATEGY IS ACHIEVABLE
FINANCING STRATEGY
DURING THE EARLY ASSET EVALUATION PHASE, WE DEVELOP A TAILORED DEBT AND EQUITY FINANCING PLAN BASED ON FACTORS SUCH AS:
PROPERTY TYPE
RENOVATION REQUIREMENTS
EXPECTED HOLD PERIOD (TYPICALLY 5–10 YEARS)
INVESTOR OBJECTIVES
INVESTMENT DISCIPLINE
WE USE A SYSTEMATIC APPROACH TO EVALUATE ASSETS, FOCUSING ON:
FAVORABLE DEMAND CHARACTERISTICS: JOB AND POPULATION GROWTH, DEMOGRAPHIC TRENDS, SUPPLY ABSORPTION RATES, AND SUPPORTIVE LOCAL LEGISLATION.
MARKET CONSTRAINTS: PRIORITIZING MARKETS WITH SUPPLY CONSTRAINTS WHILE AVOIDING AREAS SHOWING SIGNS OF OVERSUPPLY, SUCH AS SURPLUS LAND, ZONING CHANGES, OR INCREASED BUILDING PERMITS.
Value-Add Strategy
THE MORE INCOME A PROPERTY GENERATES, THE MORE VALUABLE IT BECOMES. OUR VALUE-ADD STRATEGY FOCUSES ON IDENTIFYING OPPORTUNITIES TO INCREASE CASH FLOW AND PROPERTY VALUE THROUGH TARGETED IMPROVEMENTS, KNOWN AS “VALUE PLAYS.”
KEY VALUE PLAYS
MISMANAGEMENT: ADDRESSING INEFFICIENCIES CAUSED BY SELF-MANAGING OWNERS OR POORLY SUPERVISED MANAGEMENT COMPANIES.
DEFERRED MAINTENANCE: RESOLVING OVERDUE REPAIRS AND MAINTENANCE TO ENHANCE PROPERTY APPEAL.
HIGH VACANCIES: REDUCING VACANCY RATES THROUGH STRATEGIC IMPROVEMENTS AND MANAGEMENT.
examples of value-add initiatives
IMPROVING CURB APPEAL: ENHANCING LANDSCAPING, ADDING AMENITIES LIKE DOG PARKS AND CARPORTS TO ATTRACT RESIDENTS AND INCREASE RENTS.
INTERIOR UPGRADES: RENOVATING UNITS WITH FRESH PAINT, UPDATED APPLIANCES, NEW COUNTERTOPS, AND FLOORING TO JUSTIFY HIGHER RENTS.
UTILITY BILL-BACK SYSTEM: IMPLEMENTING WATER AND SEWAGE BILL-BACKS TO OFFSET EXPENSES AND ENCOURAGE RESPONSIBLE USAGE, REDUCING OPERATING COSTS.
ADDING REVENUE STREAMS: INSTALLING COIN-OPERATED LAUNDRY FACILITIES OR OTHER AMENITIES TO GENERATE ADDITIONAL INCOME.
VALUE-ADD STRATEGY
THE MORE INCOME A PROPERTY GENERATES, THE MORE VALUABLE IT BECOMES. OUR VALUE-ADD STRATEGY FOCUSES ON IDENTIFYING OPPORTUNITIES TO INCREASE CASH FLOW AND PROPERTY VALUE THROUGH TARGETED IMPROVEMENTS, KNOWN AS “VALUE PLAYS.”
KEY VALUE PLAYS
MISMANAGEMENT: ADDRESSING INEFFICIENCIES CAUSED BY SELF-MANAGING OWNERS OR POORLY SUPERVISED MANAGEMENT COMPANIES.
DEFERRED MAINTENANCE: RESOLVING OVERDUE REPAIRS AND MAINTENANCE TO ENHANCE PROPERTY APPEAL.
HIGH VACANCIES: REDUCING VACANCY RATES THROUGH STRATEGIC IMPROVEMENTS AND MANAGEMENT.
examples of value-add initiatives
IMPROVING CURB APPEAL: ENHANCING LANDSCAPING, ADDING AMENITIES LIKE DOG PARKS AND CARPORTS TO ATTRACT RESIDENTS AND INCREASE RENTS.
INTERIOR UPGRADES: RENOVATING UNITS WITH FRESH PAINT, UPDATED APPLIANCES, NEW COUNTERTOPS, AND FLOORING TO JUSTIFY HIGHER RENTS.
UTILITY BILL-BACK SYSTEM: IMPLEMENTING WATER AND SEWAGE BILL-BACKS TO OFFSET EXPENSES AND ENCOURAGE RESPONSIBLE USAGE, REDUCING OPERATING COSTS.
ADDING REVENUE STREAMS: INSTALLING COIN-OPERATED LAUNDRY FACILITIES OR OTHER AMENITIES TO GENERATE ADDITIONAL INCOME.
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