We create real estate investment opportunities for individuals and institutional investors
Aii seeks multifamily investments from the following categories:
- Value Added Opportunities: Underperforming undercapitalized assets; Acquisition and re-positioning of well-located, older properties or newer properties that underperform due to management or ownership neglect.
- Recovering/Emerging Market Opportunities: Assets in markets with a diversified job base & strong long-term economic fundamentals and assets with clear discounts to replacement costs.
- Special Situation Opportunities: Creative financing situations or loan assumptions/restructurings, motivated and distressed sellers, REO and portfolio transactions.
Target assets will typically have some or all of the following characteristics:
- A purchase price 30 - 40% lower than the value at the peak of the market.
- A purchase price below replacement cost, sometimes 30% or more.
- A capitalization rate of 1 - 2% higher than the cost of acquisition debt.
- Net cash returns to equity of 7 - 8% in year one, growing to 10 - 12% or higher during the ownership period.
- With appreciation from inflation and improved operations, invested capital is expected to double in value - consistent with Aiiís performance of Apartments purchased in the 1990ís.