What is a Syndication?
A real estate syndication is a partnership in which investors collectively contribute capital to acquire large-scale assets that are often unattainable individually and share is the returns.
By investing passively in a commercial real estate, you avoid the hassles of tenants, maintenance, and daily operations. Each deal provides access to real estate markets and opportunities that might otherwise be unavailable or unaffordable, making syndications a great way to invest without going it alone.
The typical structure of a real estate syndication consists of General Partners (GPs), also known as syndicators, and Limited Partners (LPs).
General Partners oversee and manage the property, handling tasks such as acquisition, signing the loan, conducting due diligence, managing renovations, and overseeing daily operations. They have full liability for the company and its decisions.
Limited Partners are passive investors who contribute capital but are not involved in daily operations. Their liability is limited to their investment, meaning they have no personal liability beyond the amount they invested.
Our General Investment Criteria
Property Types: Class B multifamily, self-storage, and Mobile Home Parks
Markets: Midwest (MN, IA, WI) and South-Southeastern (Carolinas, GA) US.
1980+ Vintage
Strategy: Value-add
Hold period: 3-7 years
Performance Goals
Cash on cash returns of 7% or greater
16% to 20% IRR
17% or greater AAR
2.0x+ Equity Multiple
Deal Killers
High Crime
Median Household Income <3x the Pro-Forma Rents
Declining Population
Our Investment Strategy
We specialize in the acquisition, repositioning, and management of value-add multifamily properties in growing markets to provide superior value and returns for our clients.
By using a value-add strategy, we maximize investor returns by identifying properties with improvement potential. We then implement upgrades and renovations to increase property value and generate higher rental income. Our goal is to boost the property’s net operating income (NOI) and cash flow, which in turn increases its value. Through these strategies, our investors can achieve significant returns while enhancing the quality of the property for tenants.
Safety of Investing in Commercial Real Estate
Growing Population
The current US population is roughly 334 million people with a net gain of one person approximately every 18 seconds.
Occupancy Rates
The national apartment occupancy rate is roughly 95%. This is despite the delivery of 565,000 new units in 2023, a high not seen since the mid-1980s.
Increase In Renters
The current home ownership rate is roughly 65.6% which is the lowest rate since it was 63% in 2015 & 1965. Furthermore, the home ownership rate for those under 35 averaged just 36% in 2023.
Inflation Hedge
When rental contracts are structured properly, lease expirations are staggered throughout the year, allowing for consistent rent adjustments. Each new lease presents an opportunity to increase rents, driving property value appreciation.
FAQ
Frequently Asked Questions
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