the strategy

TARGET MARKETS

We target tier 1 markets with strong apartment fundamentals and moderate cap rates

  • Strong employment drivers provide stable rent income and help keep occupancy rates high
  • Sub-markets contain high barriers to entry and a population growth sufficient enough to absorb scheduled future supply
  • Strong GDP Growth
  • Multifamily cap trends showing cap rates of class B products at 5% or higher
  • Multifamily rental trends showing strong and stable rent growth
  • Multifamily occupancy trends showing healthy occupancy rates signaling a growing population that is outpacing the current supply of new apartments

INVESTMENT ANALYSIS

We identify sound investment opportunities with high growth potential

  • High level review of each deal through our continuous pipeline of opportunities
  • Strong focus on cash flowing and highly stabilized properties with value-add components
  • Perform a comprehensive and detailed underwriting on a selection of deals that adhere to our investment criteria
  • Offers are made on select deals that have passed our underwriting process and intensive analysis based on our investment criteria
  • Deals are further scrutinized with additional intensive analysis performed “on-the-field” including a comprehensive audit, review and due diligence prior to closing

ACQUISITION / FUNDING

We partner with investors, lenders and strategic operating partners to fund the purchase of the asset

  • Our network of accredited Investors are invited to participate in the deal as limited partners
  • Obtain competitive quotes from our lender relationships and assess a variety of financing methods that will optimize investor returns while mitigating overall risk
  • Strategically team up with select operating partners and property management group with extensive multifamily experience and a proven track record

VALUE ADD / REPOSITIONING

The implementation of value-add strategies that allow for the successful re-positioning of the asset is at the core of our business model 

  • Improving operations / Management inefficiencies
  • Exterior improvements
  • Interior renovations
  • Complete re-branding
  • Implementing a RUBS program
  • Improving demographics

INVESTOR RETURNS/STRUCTURE

  • Annual returns greater than 8%
  • 18%+ IRR Target
  • 5 year holding period, depending on business plan
  • 70% to 75% LTV
  • Minimum unit count of 200

 

KCG Properties is a real estate investment firm owning & operating a portfolio in excess of 1,400 apartment homes.

1340 Smith Ave.
Suite 200
Baltimore, MD 21209

 

Office    410-779-1364
Mobile  443-797-9400
Fax        410-779-1201
Email    info@kcgproperties.co