Strategy – Pia Residential

Strategy

Investment Strategy

PIA targets Class B properties in the Southeast US, that can be acquired below replacement cost or have been under-managed and can provide stable returns as well as capital appreciation through a disciplined value-add program with a projected average hold period of five years.

Renovation of unit interiors that translate into higher rents and improved returns to investors

Capital improvements of exteriors and common areas to increase property value

Implementation of efficient property management to improve operating performance

Improved branding and marketing to increase appeal to renter profile

Investment Rationale

Liquidity

Multifamily transaction volume continues to increase with strong institutional demand and stable debt offering.

Supply/Demand Imbalance

New deliveries of multifamily units are unable to keep up with the rapid demographic growth and new household formation.

Stable Asset Class

Multifamily occupancy has outperformed other real estate assets classes over multiple cycles.

Demographic

Continued population growth with strong migration to the Southeast.

Affordability

The shortfall of available residential units combined with the high cost to own, increases demand for Class B rental properties.

Hedge Against Inflation

Yearly rent adjustments provide good protection during inflationary times.

Target Markets

Alabama
Florida
Georgia
North Carolina
South Carolina
Tennessee
Texas

Acquisitions Criteria

No. of Units:

200 – 400. We would look at slightly lesser units if they are supported by a very good location or newer vintage.

Vintage:

1985 – 2020. We would look at a 1970’s vintage if supported by very good location. Condition will matter.

Improvement / Location:

B properties in B locations

Geography:

Primary, secondary and terciary cities of AL, FL, GA, NC, SC, TN

Value Add:

Light to Medium. Typically, no more than $5,000 outside / $9,000 inside. Over 50% of the units un-touched

Total Cost:

$20 MM – $80 MM

Equity Check:

$10 MM – $35 MM

Commission:

Typically, we expect the Seller to pay a commission. However, If the deal is not marketed and the Seller does not pay a commission, we will pay a commission.

Become a PIA Investor

PIA’s objectives are to preserve capital, produce consistent cash yields, and generate attractive risk-adjusted returns for its investors. We achieve this by carefully building a diversified portfolio of multifamily investments through PIA Residential Fund I, LP

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