STRATEGY
Fundamental Principles
At Center Street Residential, our multifamily platform is based on detailed and disciplined valuation and investment strategies. Our goal is to constantly minimize risk and consistently outperform expectations.
We are continuously seeking new acquisition opportunities in our target markets. Our strong track record and deal-sourcing relationships allow us preferred access to both on-market and off-market properties.
We apply both a top-down and bottom-up approach to evaluating every potential acquisition. The research-driven top-down approach utilizes market and economic forecast models to identify which markets in which to invest.
This macro view is then followed by a thorough bottom-up approach that evaluates the property itself based on its condition and the local market situation. It relies heavily on local market expertise, broad-based contacts, and extensive experience.
Target Investment Characteristics
- Target “A/B” assets primarily in “B” locations
- 100+ Unit, garden-style apartment assets
- $20M+ Purchase price
- Purchase price below Replacement cost
- 1980’s to 2000’s construction
- In-place occupancy of 85%+, unless clear stabilization plan
- Value-add assets with operational and renovation upside
- Target assets with majority of units untouched or “light” renovation – Implement interior/exterior renovation programs
- Target tertiary “B” locations within high-growth Metropolitan areas across the Southwest and Southeast – High quality bedroom communities/work force housing locations within 30 miles of a Metro’s primary job center
- Moderate-to-High barrier-to-entry home buying locations relative to median household income, insulated from new construction starts
Value-Add Strategy
- Implement Interior Value-Add renovations — Execute wide-ranging interior unit renovation packages with various upgrade tiers – Target 20%+ ROI
- Implement Exterior building renovations — Deferred maintenance repairs, comprehensive public space renovations, curb appeal upgrades, re-branding
- Hands-on, Active Asset Management team — Partner with top local Property Managers in our specific submarkets
- Excess land play — Target properties with vacant land for potential new phase construction
- Reduction of Bad Debt — Work with non-compliant tenants through proactive payment plans, replacement of delinquent tenant roster
- Revenue Management — Implement yield management software and perform frequent rental comp surveys to maximize effective rent, occupancy, and closing ratios while minimizing economic loss
- Ancillary Income — Actively target multiple other revenue sources to enhance bottom line – Maintain high RUBS billback, add additional covered parking, pursue furnished short-term corporate rental opportunities
- Operating Expanse Management — Relentless focus on minimizing all property related expenses – Employ trusted vendors for quality, low-cost repairs, partner with leading property tax protest attorneys, implement energy efficient utility reduction upgrades
- Marketing Strategy — Work closely with our Property Manager and on-site staff to perform various on-the-ground and online marketing campaigns to amplify on-site traffic