Acquisition Criteria

Multifamily Elite typically acquires 10 to 15 multi-family communities annually . We are looking to partner with brokers and sellers as we actively seek new acquisitions.

Geographic Area

Multifamily Elite prefers properties in well-located suburbs of the following major target markets including Houston, Austin, Orlando, Miami and Seattle. We are also looking for markets in buyer’s market phase II and while having the following qualities:

• Population over 100,000.
• 4% growth in population per year.
• 2.5% job growth in the past 3 years.
• Strong service sector (40%+) in local workforce.
• Well-diversified group of jobs coming into the area.
• Increase in house-hold formation at least 3% per year.

Micro Aspect

When the above criteria all passed, the following area-specific details are looked into to determine the optimal micro-area to invest within the city::

• Lack of available land on which to build.
• Increase in job forecast.
• Number permit records issued.
• Healthy absorption rate in the city.
• Potential revitalization zone.
• Pro-business leader with solid city plan for economy growth.

Size & Type

Multifamily Elite prefers 20 units or more of garden style 2-4 story apartments, brick if possible, within the price range of $500,000 – $3,000,000 and having potential high yield income streams. More detailed preferences:

• Generally, B and C class property types in class A and B locations
• Utilities—individually metered preferred whenever possible.
• Roofs—pitched construction preferred.
• Minimum occupancy—80% and have a value-add  (forced appreciation) opportunity.
• Quality property, but minor amounts of deferred maintenance will be considered.
• Age—Preference is 1979 and newer, but will consider all age properties.
• Cap Rates—Prefer rates above 8%.
• Cash-on-Cash Return—Prefer rates above 10%.
• Asking price below replacement cost.