Business Strategy
Acquisition Criteria
PROPERTY CRITERIA
Emerging markets with growing senior population
Pitched roof construction, preferred
Occupancy above 70%, with the exception of properties that require renovation, providing properties are well located and present value-add opportunities
TARGET VALUES
Size & Price: 50-100 units in the $3M - $10M range
Class: B class properties in A or B areas
Property vintage: 1980s or newer
Minimum Cash on Cash Return: 10%
Minimum Equity Multiple: 2.3x
Minimum IRR: 20%
Emerging Markets
CRITERIA WE LOOK FOR EMERGING MARKETS:
Migration to the area rather than out of the area
Job growth and creation
Rents and property values increasing
Government dedicated to attracting jobs and creating business activity
Competitors and new supply coming into the market
HOW WE EVALUATE EMERGING MARKETS:
Job growth reports
Population growth
Local economic reports & trends
Chamber of Commerce Reports
And much more
Acquisition Strategy
RIGOROUS DUE DILIGENCE FOR INFORMED INVESTMENTS:
Each asset undergoes a comprehensive due diligence process to verify its physical condition, legal status, and accurate valuation. This ensures that our investment strategies are grounded in sound data and realistic expectations.
TAILORED BUSINESS PLAN:
Early in the evaluation process, we develop a customized business plan. The business plan includes the key improvement areas that must be realized to increase valuation of the asset. As part of the business plan, we consider the financing strategy which accounts for factors like care type, renovation needs, anticipated holding period, and investor objectives. Our typical holding period for assets ranges from 5 to 7 years, aligned with individual business plans.
STRATEGIC MARKET SELECTION:
Asset selection involves a systematic evaluation to identify markets with favorable demand characteristics. We prioritize areas with strong job growth, senior population increases, favorable demographic shifts, robust supply absorption rates, and supportive local legislation.
AVOIDING OVERBUILT MARKETS:
Markets with signs of oversupply, such as excess land, zoning changes, or increased building permits, are carefully avoided. Our focus is on regions with supply constraints, which typically offer more favorable investment opportunities.
Value-Add Strategy
Our strength is in adding high value to neighborhoods by repositioning, rebranding, and stabilizing under-performing properties. We specialize in delivering outstanding results by locating and acquiring high-quality, well located commercial assets with promise, invest in an experienced and motivated team, streamline operations, and realize tax-advantaged returns.
Our goal is to accelerate appreciation and therefore, the value of the asset, by increasing rents. These “value plays” are vital to our business strategy and returning stable, consistent returns to our investors.
KEY INDICATORS OF A VALUE-ADD PROPERTY:
Mismanagement by a self-managing owner
Poor supervision of management companies
Deferred maintenance
High vacancies
Below market rents
​Missed opportunities to add amenities
Some examples of value-added plays we’ve implemented:
Improve curb appeal and safety by improving landscaping, adding walking trails, installing new signage, installing outdoor lights & security cameras, etc.
Create a safer resident experience by implementing new technology and wearables to detect falls.
Purchase a property that is 10% or more under current market rents.
Add new care services for Parkinson's, increase community fees to align with the market.
Improve occupancy from 50% to over 90%
