- Sub-institutional multifamily assets ($3M-$30M total capitalization)
- Well located submarkets and micro-locations with sustained demand drivers and supply constraints
- Quality physical plant with limited functional obsolescence
Investment Strategy
Our Investment Philosophy
"Rule No. 1: Never lose money.
Rule No. 2: Never forget rule No.1"
Buy great real estate
We are focused on buying real estate that we’d be proud to own forever, with durable staying power and downside protection – focusing maniacally on the micro-location of the asset, quality of the physical plant, and unique aspects to the property that differentiate it from the competitive market set
Capitalize conservatively
Long term durations to reduce cycle risk and leverage ratios / coverage ratios that can withstand revenue reductions and operational challenges to reduce illiquidity risk
Never compromise
We believe the end result of a long-term mindset in every business decision we make is a financially sustainable business that allows us to keep incentives aligned between operator and investor and never compromise on the above points
Our Acquisitions Strategy
What Do We Want To Own?
+Where Do We Want To Own?
+
- Current Markets
- Future Expansion Markets
What Underwriting Metrics Are We Focused On?
+- Stabilized yield on cost relative to market cap rates and market debt constants
- Price per square foot cost basis at acquisition and post-renovation relative to new development costs
- Debt service coverage ratios and loan term / maturity
How Do We Source These Opportunities?
+- Brokers are the lifeblood of our business. We view them as true partners, aligning economically and approaching these relationships with a long-term view, working on both listed and off-market transactions
Our Capitalization Strategy
Equity
+Our LP relationships are built on a foundation of trust – we want to do a lot of business with a select group of investors that are aligned with our core values and investment philosophy
Our investors are primarily tax conscious individuals and entities that appreciate the use of tax advantaged strategies in our investments
Debt
+The power of leverage to amplify returns comes with serious risks that can threaten preservation of capital if not managed appropriately – preservation of capital is priority number one for us and our investors
Inability to pay current debt service or balloon payment at maturity is the primary driver of loss of capital in real estate – we default to extended loan terms (7 years+), fixed interest rates, and coverage ratios that can withstand material decreases to revenue
Return Of Capital
+Acquiring great real estate is difficult – once acquired, we prefer to hold assets for long time periods and return capital to investors through tax-free refinances and healthy ongoing cash flow
In cases where an opportunistic disposition makes sense, we strive to offer our investor base 1031 exchange optionality to limit tax consequences and continue to own great real estate alongside Vintage
Asset Management & Investor Reporting
Our institutional background and upbringing in the business shines through in our asset management/construction management/transaction execution, applying lessons learned and proven systems from the oversight of $1B+ of AUM alongside partners such as AIG, Assurant, PIMCO, QuadReal, Osso, among others.
As an institutional operator, the investors / clients are acutely aware to the minutiae of every deal point, requiring each decision to be clearly articulated and explained – an approach we are comfortable with and apply to the investor reporting at Vintage. Full transparency is our brand.
