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

TYPICAL INVESTOR RETURN/STRUCTURE*

  • Average Annual Cash-on-Cash Returns of 8.5%+**
  • 16% – 20% IRR Target**
  • Equity Multiple of 2.0+**
  • 7% Annual Preferred Return to Class B Investors, distributed monthly
  • 10% Annual Preferred Return to Class A Investors, distributed monthly
  • 5 year holding period

 

*Will vary depending on the specific deal
**Only applicable for Class B Investors

KCG Properties is a real estate syndication firm owning and operating a portfolio in excess of 2,000 apartment homes.

10451 Mill Run Circle
Suite 400
Owings Mills, MD 21117

Office    410-654-3301
Mobile  443-797-9400
Fax        410-356-8804
Email info@kcgproperties.co