Providence Investments concentrates on existing apartment assets in strategic markets where the potential exists to add value over a 5 to 7-year hold. The exit strategy is executed at a point when operating conditions, and local market’s cycle dictate maximum returns in the investment, typically between seller stage I and II. Our initial acquisition approach starts with an end in mind. Our success and reputation is based on a very conservative approach to the numbers, combined with deep analysis of capital markets and asset. We take pride in our high value of service, passion and ethics in what we do.
Acquisition Cost: $5,000,000 – $60,000,000
Asset Type: We desire top physical qualities on A and B assets. Pitch roofs, hardiplank and/or all brick construction. Garden-style or mid-rise preferred with a minimum 150 units.
Value-Add: We constantly search for real estate opportunities with an emphasis on high-class quality assets in prime areas. We add value by acquiring assets well below replacement cost, improving management efforts, rehabbing and controlling operations to maximize value and returns.
Specific Locations: We prefer primary and secondary markets in Southeastern states, including Texas, Arkansas, Oklahoma and in a few northern states with barriers to entry. We concentrate on properties within the path of progress within a 5-10 mile range from large employment centers and school systems. We have also found that investing in markets with a balanced population growth, high tenant demand, key demographics, strong leadership and employment growth, has proven to be the key in our investment strategy. These principles have allowed Providence Investments and its partners to flourish and outperform the toughest economic market in history.
- Management restructuring, property reposition, and a varied approach from past owners
- Equity Requirements of 20-30%
- Acquisition below Replacement Cost
- Projected IRR exceeding 18% over a Hold and Sale Period of 5-7 years
Our Exit strategy is clear and concise, always keeping in mind our initial target return on investment.
- Sale of the asset at the pre-determined time
- Combined sale as a portfolio to yield higher return
- Refinancing the property