Our Strategy
Adventure Capital Growth focuses on acquiring well-located, highly desirable, attractively priced, cash flowing multifamily residences communities in which we can implement meaningful value methods through repositioning, re-tenanting intensive operational management. Our proactive management style with researched driven approach enable us to evaluate the market and mitigate risk, maximize value and deliver superior results for partners.
Our strategy leverages our local reputation and professional network to gain in-depth market research and access to off-market deals. Partnering with experienced 3rd party property managers we are able to maximize operating efficiency. Adventure Capital Growth conservatively targets and acquires asset with leverage below 75% LTV to mitigating risk from external market downturns. Asset ownership range from one to seven years with a targeted investor IRRs ranging from 13% – 20%. Our business model is designed to produce significant cash returns in any operating environment.
Selection & Underwriting
Our multifamily investment strategy is aimed to achieve superior returns by investing in attractively-priced “off the radar” B and C class assets in secondary markets (e.g., Las Vegas, Tucson, Phoenix, Albuquerque ). We reposition the assets to increase competitive appeal to our target Echo Boomer demographic while implementing innovative systems to improve rental rates and operating efficiency. Our multifamily investment strategy is aimed to identify and select assts that generate cash flow from purchase.
Property Management & Sale
Following acquisition our property management team executes our pre developed comprehensive repositioning program. Renovation and operational value add improvements; can include, unit renovations, exterior renovations, new model apartments, amities installation, and 3rd party contract renegotiations to give the asset a new look across the portfolio. Our capital improvement plans typical addresses infrastructure issues such as landings, roofs, parking lots, lighting, landscaping and gates. Each improvement is calculated to ensure asset preservation, risk mitigation and maximize investment performance for length of ownership. Asset disposition is timed to coincide with peak occupancy and performance with market condition capitalizing on forced appreciation.
Investment Criteria
Property Type: Class B & C stabilized multifamily residences with repositioning opportunities.
Locations: Primary and secondary Southwest markets with population growth above 20% and an annual job growth of 2-3%.
Target Property Size: 30+ units
CAP Rates: Market
Deal Size: $1,500,000 – $20,000,000”.
Partnering for larger and smaller deals will be considered on an asset by asset basis.
Cash Equity: “All Cash” preferred,
Will consider mortgage assumptions on asset by asset basis.
Physical Property Attributes :
Age: Mid-1980s and newer are preferred
Will considered others on a case-by-case basis.
Apartment Style: Garden Style, Mid-Rise Townhouse Court preferred
Roofs: Pitched construction preferred
Utilities: Individually metered
Minimum occupancy: 80%. However, we will consider reposition opportunities if the properties are well-located and present value enhancement opportunities
Value Add: Consistently looking to acquire assets with opportunities to add value through physical improvements, curing of deferred maintenance or with opportunities to improve management efficiency.