The Capital Stack
The First Quarter of 2024 has been busy. In February, we completed the acquisition of Sugar Pine. Then, in March, we finalized the purchase of Milford Village. In April, we successfully secured contracts for three more properties that meet our preferred criteria for size and location. Although we can’t reveal many specifics about these new acquisitions at the moment, we’re excited about the opportunities they present for our future.
What’s Our Day to Day like?
Acquisitions
I (Tory) lead acquisitions, financing, capital raising, and the development of the overarching business plan for each property. My relationships are with sales brokers, debt brokers, and our investors. My day-to-day activities currently involve conducting due diligence for our deals under contract, paying vendors on existing projects, coordinating large projects such as parking lot repairs and tree removal, etc. I also spend a good amount of time building new limited partner relationships, gathering all data needed for our lenders, and communicating with sales brokers about potential opportunities. If you’re an LP looking to invest I would love to chat. You can schedule time here.
Parker and Cody serve as our Vice Presidents of Acquisitions, actively seeking out potential deals. Their primary task involves mining owner information from platforms like Costar, including emails, phone numbers, and mailing addresses. Often, this data requires cross-referencing with other sources due to inaccuracies. Our strategy hinges on targeting contacts who are harder to reach, as they may present untapped opportunities. Utilizing this information, Parker and Cody engage in various outreach methods such as cold calls, emails, direct mail, or in-person meetings with owners to explore potential deals. We maintain regular weekly calls and ongoing communication to stay updated on progress. Once they identify a promising deal, they build a model to see where the numbers shake out, and we collectively review and formulate an offer to present to the owner.
Asset Management
Emmie, our head of asset management, oversees all existing property operations and serves as the primary point of contact for our property managers. As we approach the closing of a new deal, Emmie will review the business plan with our property managers and coordinate vendors as needed.
From an operational perspective, here’s what she works on
- Creating our monthly update reports for LPs
- Coordinate with all vendors and property managers.
- Planning interior and exterior renovations
- Purchasing finishes and materials for unit renovations.
- Ensure unit turns are moving forward
- Requesting and receiving leasing updates from our Property Management Company
- Coordinating move-out dates with new vendors
- Tracking collections and following open delinquency cases
- Writing our weekly newsletter
These items scratch the surface of Emmie’s scope of work. While she operates largely behind the scenes, her efforts substantially enhance the value of our properties.
In the last week, here’s a small example of work that’s been completed or is currently underway on our properties.
- Brush clearing/tree removal at Milford
- Parking lot repairs at Sugar Pine
- New laundry company + machines at Sugar Pine
- Unit Renovations at Milford, Sugar Pine, Donovan Townhomes, Plymouth Gardens
- Hallway and common area renovation at Sugar Pine
- Professional photos and video at Sugar Pine. We can’t wait to share these soon!
Recently, things have been busy, but it’s been incredibly enjoyable. Before acquiring Sugar Pine in February, we hadn’t made a purchase since July 2022. It feels great to be actively seeking out deals that match our investment criteria and raising capital from our LPs.
Major Market News
Office to Residential Conversions
Our two most recent acquisitions have us knee-deep in renovations and property improvements. However, it seems our workload might not be as intense as the office-to-residential conversions happening in New York. According to TheRealDeal, Tony Park and Elad Dror are converting a neglected office building in Koreatown into a 77-unit apartment complex. The article mentions that such conversions are challenging, with unexpected costs and complications deterring even experienced developers. For more information on the renovation, you can find the full article linked here.
Tips and Tricks
Terms-
Our Investment Criteria: We only consider buying properties in areas with an income greater than ~$60k and home values greater than ~$250k. You can read an entire article about our buying criteria here.
