Investment Strategy

Acquisition Criteria

The following criteria is used to identify undervalued multifamily properties for acquisition, value optimizations, management and disposition.

MARKET SEGMENTS

  • Age: The 18-35 year old market segment is 22% of the U.S. population

  • Income: Renters who earn $40,000 or more annually

  • Price: Where rent is 30% or less of the median income

  • Retiring Baby Boomers are scaling down and enjoying maintenance-free multifamily living

PROPERTY CRITERIA

  • Multifamily residential apartments

  • Pitched roof construction preferred

  • Occupancy above 80% with the exception of properties that require renovation, providing properties are well located and present value-add opportunities 

TARGET VALUES

  • Size and Price: 50+ units in the $4MM – $50MM range

  • Returns: 7-10% Cash on Cash, Minimum Debt Service Coverage ratio of 1.25

  • Type: C- to B+ properties located in C- to A areas

  • Property Vintage: 1975 or newer

  • Location: Emerging market areas with indicators for strong near and long-term economic growth

Emerging Markets

Selecting the most suitable multi-family apartment complex for acquisition is an essential component of GLC's investment approach. We conduct thorough research and concentrate on prospects in developing markets where the local economy and job opportunities are growing.

MARKET RESEARCH

  • Job Growth Report

  • Population Growth

  • Path of Progress Reports

  • Local Economic Reports & Trends

  • Chamber of Commerce Reports

CHARACTERISTICS

  • People moving in, rather than leaving the area

  • Jobs being created and moving in rather than lost

  • Rents and property values rising

  • Local government dedicated to attracting jobs

  • Markets starting to absorb oversupply