Your Subtitle text
Multifamily Fund                                               



Oxford New Town

Multifamily Fund Strategy

Objective
To create an equity fund for investment in affordable multifamily For Sale and For Rent properties on a nationwide basis and to generate above-market opportunistic returns. 
  • High returns could be achieved by renovating existing properties and developing new properties to create value and then financing them at a 70/30 debt/equity ratio to enhance the return on equity.
  • The affordable element was guided by capping rents using a formula based upon each Metropolitan Statistical Area’s (MSA) Average Median Income (AMI).

Execution

The most effective way to access the more attractive opportunities nationwide was to form programmatic relationships with selected developers and operators who had local expertise and a pipeline of transactions.

  • A For Rent program was initiated with an east coast developer using a scaled-back and repeatable design that would enable the construction of new units offering a more affordable rental rate. 
  • A For Sale program was initiated with a national developer to construct high rise condominium buildings with high space efficiencies and lower costs per square foot. 
  • A For Rent program was initiated with an New York City based operation to acquire affordable housing and convert stabilized units to market rate units within the guidelines of the local housing regulations. 
During the course of two years, 29 existing properties including a portfolio of 25 properties were acquired and 10 new developments were commenced.


Outcome
  • In the case of the development properties, all the properties were completed on time  and on budget.
  • Property lease-ups met or exceeded budgeted assumptions.
  • The bulk of the value-add properties were in a 25-property portfolio located in the Bronx in New York City.  These properties were acquired at a very low basis with upside in the conversion of stabilized units to market rates.