M1 acquires underperforming and undervalued multifamily real estate assets where opportunities exist to maximize inherent value through professional property management, rehabilitation, and repositioning.
Acquisitions are principally between $15 and $50 million, a niche that is out of reach for most individual investors or small investment companies, and below the REIT and institutional investment company threshold.
We acquire properties that generally share the following characteristics:
Class B/-B quality with the potential to reposition to class B/B+, or better.
Typically off-market transactions with substantial discount to replacement costs (40-80% discounted).
Strategically located in growing US submarkets demonstrating favorable long-term resident demand.
Non-reliant on higher-risk strategies requiring financial engineering, condominium conversion, and momentum-driven quick selling.
Conservative underwriting across operational and financial assumptions.
Day 1 cash flow with a strong balance between on-going cash flow and disposition proceeds.
M1 maximizes ROI through strategically reducing operating expenses, gradually raising rental rates to market levels, and improving the resident profile through targeted capital improvement programs and repositioning.
Upon stabilization, M1 holds and operates the assets, selling each property or the portfolio when the market conditions are most advantageous to maximizing returns. Refinancing during the holding period is also considered.