Multi-Family Long Term Rentals (LTRs)
Multi-family units traditionally have always presented investors with a stable long-term asset that appreciates well and provides critical housing needs for communities.
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Above 8's focus in the multi-family sector will be centered on building communities of value that provide sound returns but more importantly provide a home and community that tenants are proud to live in.
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Thoughtful design, innovative sourcing, and cutting-edge technology will be used to ensure assets are sustainable, profitable, and properly managed to ensure long-term gain.
Why Multi-Family Residential
As shown below, observed rental prices nearly track with or surpass the consumer price index over time. Because of this, rent rolls within a multi-family asset will nearly always generate the required income to maintain a stable asset. Coupled with sound lending partners sourcing multi-family investments allow the fund to maintain a sound positive cash flow that enables long-term holds on high-value asset such as small apartment complexes in critical markets.
How It Fits In to Our Strategy
When sourced correctly with sound debt structures, multi-family assets will contribute to the fund's appreciation strategy. Providing a stable asset that can withstand fluctuations in vacancy, this asset type will enable the fund to hold and leverage for periods of time greater than 7 years. With the average recession cycle rebounding in 1.9 years, an extended holding period of a stable asset will nearly always see appreciation.
Mitigating Risks In Multi-Family
Multi-family living accommodations are a critical aspect of housing supply. However, they are not impervious to risk. Sound engaged management that works to place and retain high-quality tenants along with responsible maintenance are critical to maintain a stable asset. Moreover, Above 8 will seek to add multi-family units that can be converted or enhanced to create a localized community feel. By providing this environment to tenants, Above 8 seeks to create a sense of ownership by the tenants that is likely to reduce turnover, damages, and costly evictions.
