AHI targets under-performing multifamily properties that have management issues and/or require capital improvements to maximize cash flow. Shortly after closing, AHI institutes a capital expenditure and marketing program, installs a qualified management team and repositions the properties as required in order to substantially improve cash flow and residual returns. Once occupancy and rental income have been stabilized, the properties are recapitalized through refinancing or sale.
AHI’s investment strategy focuses on:
- Motivated Sellers. AHI originates transactions from motivated private and institutional sellers in circumstances in which capital costs of assets compel their sale rather than their reinvestment.
- Location. AHI concentrates on apartment projects in metropolitan (urban and suburban) markets where household income, employment and population growth is stable or increasing. These markets have historically included Illinois, Wisconsin, southeastern regions of the US (Florida, Georgia, North Carolina, and Tennessee) and Colorado.
- Property Characteristics. AHI targets well-located properties that are preferably sized between 50-350 total units. Individual apartment units must also be well configured, so unit interiors (such as kitchens, carpeting and window treatments) and project amenities (clubhouses, fitness centers and business centers) can be renovated to compete effectively in the market.
- Image and Branding. AHI generates a unique perception and image at each property. A detailed leasing plan is created for each property that sets forth a unique selling position, image and brand that is to be created. Employees are retrained, new marketing (including an individual interactive web site) and advertising is implemented to communicate the property’s new brand.