Strategy
How We Deliver Affordable Housing
Our disciplined approach converts underperforming properties into quality communities at 50 -- 70% below new construction cost -- zoning first, phased renovation, operational stability.
Process
Six steps from acquisition to stabilized community.
Market & Asset Selection
We identify underperforming properties in supply-constrained markets with strong employment drivers and workforce housing demand. Target properties have 100+ units in the $25K -- $70K per-unit range.
Zoning-First Entitlements
Multifamily zoning is secured prior to closing, eliminating entitlement risk before capital is deployed. This is a critical differentiator that protects every deal from the start.
Phased Renovation
Units are renovated at $10K -- $25K each with full kitchens, new flooring, updated fixtures, and furnishings. Properties with existing residents generate cash flow during the renovation period.
Lease-Up & Operations
Units are leased fully furnished with all utilities, cable, and internet included at $1,000 -- $1,400/month. Professional on-site management ensures quality living from day one.
Stabilization
Disciplined operations and active asset management drive occupancy and stabilize cash flow. Interest reserves fund the first 12 -- 18 months, ensuring smooth execution.
Long-Term Financing
Stabilized properties are refinanced into permanent debt at attractive terms, locking in returns and recycling capital for continued portfolio growth.
Economics
Typical Deal Economics
Our all-in cost of $60 -- $90K per unit compares to $280 -- $290K for new garden-style construction -- a 65 -- 80% cost advantage that translates directly to lower rents.
$25K -- $70K / unit
Acquisition Basis
$10K -- $25K / unit
Renovation Cost
$5K -- $10K / unit
Interest Carry
$60K -- $90K / unit
All-In Basis
$1,000 -- $1,400
Monthly Rent
~35 -- 40%
Expense Ratio
Risk Management
Every deal is structured to minimize downside.
Zoning Secured Pre-Close
Multifamily entitlements are confirmed before closing, eliminating the single largest risk in conversion projects.
Built-In Cash Flow
Properties often have existing occupants who stay through the transition, generating partial revenue from day one.
Conservative Reserves
Interest reserves fund the first 12 -- 18 months, ensuring the business plan is fully protected during renovation and lease-up.
See the Strategy in Action
Our case studies detail how this model has played out across multiple communities.