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MISSION

To build community and enrich lives by serving as a vehicle for social impact, environmental sustainability, and financial alpha through generating attractive risk-adjusted returns for all stakeholders.

CORE STRATEGY

CRP’s core strategy is to invest in workforce, attainable, & affordable housing while adding value by 1) improving the condition and energy efficiency of the physical property; 2) employing institutional management strategies that will enhance property operations; and 3) incorporating cultural and social impact strategies that help build community.

VALUE-ADD WORKFORCE HOUSING

photo_investment1CRP has an investment strategy that focuses on the middle of the apartment market sector and invests in workforce housing assets. With institutional investors focused primarily on the upper segment and federal policymakers on the lower, workforce housing in the middle of the rental housing pack comprises 70.5% of national multifamily housing stock and has gone largely untapped by professional operators in relation to the overall market representing an arbitrage opportunity to take advantage of the inefficiencies that exist within this segment of the market and paving a way for professional management to carve a niche in an otherwise commoditized, homogeneous market of workforce multifamily properties.

   

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•Estimates indicate 10% (3.5 million units) of all occupied rental units have “moderate to severe” physical issues while another 200,000 units annually are eliminated from the rental stock due to functional obsolescence which portends opportunity to acquire assets in dire need of rehabilitation.
•Multifamily properties utilizing professional management have shown the ability to charge higher rents than comparable apartment properties not professionally managed. Additionally, professional management on institutional platforms provide for more effective expense management as well as economies of scale in most every major category.
•Turnover rates in the middle market are usually markedly lower than in the upper market. 66% of middle market renters have lived in their units for over a year compared to 58% in the upper market.
•Middle market properties have historically demonstrated resilience in economic downturns and have been found to fare better than other asset classes making them stable investments relative to other investment alternatives over the long-run.

INVESTMENT CRITERIA

– Minimum 150 Units

– Individual assets or Portfolio acquisitions

–  B & C-Class Assets

– Core-plus & Value-Add Assets

– Primary and Secondary MSAs in Sunbelt States

– Markets that exhibit strong job and income growth, population and household formation growth, and constrained workforce housing supply.

– Hispanic demographic density of 15%+ in Zip Code

– Near Strong Job Centers, Acclaimed Schools, Hispanic Retail, and Transportation Nodes/Public Transit

Comunidad Realty Partners Target Markets

1 Southwest: Texas – Austin/San Antonio/Dallas/Ft Worth/Houston; New Mexico – Albuquerque/Santa Fe; Oklahoma – Oklahoma City/Tulsa

2 Mountain: Arizona – Phoenix/Tucson; Nevada – Las Vegas/Reno

3 West: California – Los Angeles/Orange County/San Diego

4 Southeast: Georgia – Atlanta; Florida – Orlando/Tampa/Miami; Carolinas; Tennessee – Nashville

CASE STUDIES

Villas de Sendero
villasVillas de Sendero Apartments
209 units
San Antonio, TX
Investment Features

  • – Yr Built: 1984
  • – NetRentable SquareFeet: 156,123
  • – Avg Unit Square Feet: 747 sf
  • – Occupancy at Purchase: 90%
  • – Market Occupancy: 95%
  • – Rents at Purchase: $.76/sf
  • – Stabilized Rents: $1.03/sf
  • – Cash-on-Cash Return: 15.8%
  • – Unrealized IRR: 33.4%

Villas del Sendero Apartments was acquired in November of 2011 for $8.25 million from an absentee, out of state owner that had neglected the property for a number of years. The property was acquired as a value-add transaction with significant economic occupancy variances to market along with opportunities to grow other income and reduce expenses. The property received a capital infusion for exterior improvements and unit upgrades in order to achieve rent increases.

After the completion of the capital improvement program, the property experienced 96% occupancy with a substantial increase of rents from $.76/sf to $1.03/ sf. In addition, other income was increased by 300% through improving ancillary income. This enabled investors to realize cash flow or cash-on-cash returns of 15.8%.

Villas del Sol

solVillas de Sol Apartments 294 units
Austin, TX
Investment Features

  • – Yr Built: 1982
  • – Net Rentable Square Feet: 190,496
  • – Avg Unit Square Feet: 676 sf
  • – Occupancy at Purchase: 78%
  • – Market Occupancy: 95%
  • – Rents at Purchase: $.72/sf
  • – Stabilized Rents: $1.06/sf
  • – Cash-on-Cash Return: 14.6%
  • – Unrealized IRR: 32.6%

Villas del Sol Apartments was acquired in March of 2012 for $8.15 million from a distressed, non-profit owner that needed to sell the property at a substantial discount to market value. The property was acquired with bridge debt and received a capital infusion of close to $2 million for exterior improvements and unit upgrades in order to achieve rent increases. The property was in poor condition and had problem tenants and neglect from a management standpoint.The capital improvement program consisted of exterior work including new soccer court, enhancing laundry rooms, upgrading clubhouse, new signage, Mexican-themed landscaping with drought-tolerant agaves, yuccas, palms, a new iron-wrought gate and security entrance, dog play area “bark park”, new lighting. The interiors of the units received improvements with new wood flooring, new black energy-efficient appliances, bathroom fixtures, new lighting package, countertop resurfacing, and new cabinetry.

After the completion of the capital improvement program, the property experienced 95% occupancy with a substantial increase of rents from $.72/sf to $1.03/ sf. This enabled investors to realize cash flow or cash-on-cash returns of 14.6%.

Villas de las Colinas

colinasVillas de las Colinas
178 units
Austin, TX
Investment Features

  • – Yr Built: 1970
  • – Net Rentable Square Feet: 136,190
  • – Avg Unit Square Feet: 765 sf
  • – Occupancy at Purchase: 98%
  • – Market Occupancy: 95%
  • – Rents at Purchase: $.78/sf
  • – Stabilized Rents: $.98/sf
  • – Realized IRR: 74.26%

Villas de las Colinas Apartments was acquired in April of 2012 from an out of state owner that self-managed the property and had deferred a number of maintenance items and was underperforming the market on both rents and other income.

The property was acquired as a value-add opportunity with rents performing at a 25.6% delta to market and other income significantly under market. The property received a capital infusion for exterior improvements and unit upgrades along with institutional management best practices being implemented to realize a 60.4% improvement to NOI.

WHAT MAKES US DIFFERENT

CRP’s investment strategy is predicated on creating culturally-relevant communities that cater to the diverse resident makeup at its properties. The company specializes in acquiring and repositioning apartments in infill locations and implementing its proprietary cultural management platform, which includes specific cultural upgrades and community-oriented resident services and programs.

The firm has particular expertise and an extensive background within the Hispanic marketplace, which enables it to uniquely tailor aspects of its product and service offering to the cultural idiosyncracies and nuances of the growing Hispanic demographic. The firm is also proud of its many products and services that are culturally specific to African-American, Asian, Middle Eastern, and other ethnicities living within its communities and that support its mission of providing all-inclusive, tailored workforce housing.

This targeted approach to providing a relevant living experience to all residents enables CRP’s properties to provide a differentiated product in the marketplace and more than just a home but a lifestyle. As a result, this approach greatly promotes community, improves resident satisfaction, and increases resident retention. From an investment standpoint, we find these unique operational dynamics translate into consistency of cash flows and certainty of income with less investment volatility while improving dividend stability.

photo_cultural2COMUNIDAD REALTY PARTNERS AND ITS RELATED ENTITIES OR AFFILIATES IS A PROUD EQUAL HOUSING OPPORTUNITY PROVIDER AND AVIDLY SUPPORTS INCLUSIONARY HOUSING. NOTHING CONTAINED HEREIN OR ANYWHERE ON THIS WEBSITE SHALL BE INTERPRETED OR CONSTRUED TO THE CONTRARY.

CRP’s investment strategy is predicated on creating culturally-relevant communities that cater to the diverse resident makeup at its properties. The company specializes in acquiring and repositioning apartments in infill locations and implementing its proprietary cultural management platform, which includes specific cultural upgrades and community-oriented resident services and programs.

photo_cultural1The firm has particular expertise and an extensive background within the Hispanic marketplace, which enables it to uniquely tailor aspects of its product and service offering to the cultural idiosyncracies and nuances of the growing Hispanic demographic. The firm is also proud of its many products and services that are culturally specific to African-American, Asian, Middle Eastern, and other ethnicities living within its communities and that support its mission of providing all-inclusive, tailored workforce housing.

This targeted approach to providing a relevant living experience to all residents enables CRP’s properties to provide a differentiated product in the marketplace and more than just a home but a lifestyle. As a result, this approach greatly promotes community, improves resident satisfaction, and increases resident retention. From an investment standpoint, we find these unique operational dynamics translate into consistency of cash flows and certainty of income with less investment volatility while improving dividend stability.

what-makes-us-differentCOMUNIDAD REALTY PARTNERS AND ITS RELATED ENTITIES OR AFFILIATES IS A PROUD EQUAL HOUSING OPPORTUNITY PROVIDER AND AVIDLY SUPPORTS INCLUSIONARY HOUSING. NOTHING CONTAINED HEREIN OR ANYWHERE ON THIS WEBSITE SHALL BE INTERPRETED OR CONSTRUED TO THE CONTRARY.

UNIQUE COMPETITIVE ADVANTAGES

The firm uses a proprietary screening technology to ensure Hispanic and other residents that don’t qualify on credit score alone (25% of Hispanics do not have a credit score) or other traditional measures can qualify on metrics that are equally as effective in determining creditworthiness. This enables CRP to draw from a larger pool of overlooked prospects while not compromising tenant credit and payment viability.
CRP provides more than just a home but a lifestyle. To this end, CRP offers to its residents a proprietary ancillary income program that offers relevant products and services that residents value. This lifestyle approach to ancillary income allows the firm to provide a convenient and accessible way to capture income on items that residents would otherwise be spending elsewhere but deliver it in a convenient and reliable way to its residents. The concept is rooted in providing a comprehensive lifestyle full with items such as international calling centers, Foreign-language/international cable packages, grocery vanpool, DVD rentals (Domestic & International Films), financing of furniture/auto/electronics, international wire remittance, housesitting concierge, and more.
A primary tenet of the investment model is maximizing resident retention, which enables the property to build community. This can translate into tens of thousands of dollars in cost savings to a property in the form of turnover costs, vacancy costs, payroll costs, marketing costs, and other resident acquisition costs.
To perpetuate retention, CRP invests heavily in resident referrals at its communities in order to create organic demand derived from its own residents endorsing our properties to friends and family which helps build community. CRP properties report higher than average resident referral ratios in relation to the rest of the industry which enables its properties to retain quality tenants and this dynamic forms a natural, voluntary barrier to exit.
By developing amenities and physical improvements that are relevant to the unique cultural leanings and tastes of our residents, CRP has had proven success in improving resident satisfaction & retention.

HISPANICS: THE EMERGING DOMESTIC MARKET

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DEMOGRAPHIC GROWTH
RENTER DEMAND
GEOGRAPHIC CONCENTRATION