LRE’s investment strategy is grounded in identifying projects with the following traits:
Markets that exhibit strong population growth, low unemployment, favorable demographics and robust housing needs.
Target tax sheltered average annual cash-on-cash returns of 6-9% (paid quarterly), with overall return objectives of 10-16% IRR.
Prefer long-term, low-cost, fixed-rate financing from the onset to mitigate interest rate risk and reduce cash flow volatility.
Target projects where the rents would be affordable to the working class that earn incomes between 60% to 120% of area median income.
Acquire assets at a discount to replacement cost, reducing supply risk while allowing for underwritten rents below new construction in the area.
Target properties with 150-500 units to create operating efficiencies and facilitate optimal exit opportunities with institutional buyers.