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Strategy

ANDMARK focuses its efforts primarily on the acquisition and long-term management of multi-family properties in secondary and tertiary metropolitan areas in the United States. The management of the funds is networking with local property management firms in those areas to solicit off-market listings that will result in attractive purchase prices.  The fund is initially pursuing this strategy in the Montana, Oklahoma, Kansas, Missouri, Arkansas, Arizona, Georgia, Indiana, Kentucky, Mississippi, Tennessee, Ohio, and Texas areas. The fund’s investments will be primarily in value added residential properties that can be purchased at discounts compared to replacement costs or current market valuations.

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Market Opportunity

ANDMARK maximizes value in the current environment by:

  • Looking to invest in multi-family properties in underexposed secondary and tertiary U.S. metropolitan markets – where it is possible to acquire higher yield investments that are lower risk because they do not rely on future appreciation for the majority of their return.
     
  • Utilizing Advantageous Financing - despite recent increases in interest rates, rates still remain historically quite low.  The ability to purchase properties at cap rates between 7% to 9%, and secure financing in the mid 4% range creates a compelling economic case for our projects.
     
  • Targeting product in a space that is difficult for individuals to invest alone in, but too small to be material for the larger real estate funds.
     
  • Expecting superior rent growth over time as supply is tighter in these areas; most new building has been concentrated in the bigger markets.
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Acquisition Criteria

  • FOCUS: The primary focus of the fund is on those secondary markets exhibiting the characteristics management feels represent the advantageous nature of these areas: less focus from national funds, limited backlog of new supply coming on line, solid and diversified regional economies, and markets that are not "overbought".

  • TARGET MARKETS: Secondary and tertiary metropolitan areas in Montana, Texas, California, Kansas, Missouri, Arkansas, Tennessee, Ohio, Indiana, Kentucky, Michigan, Pennsilvania, Memphis, Florida, Georgia, Arizona, Iowa, Illinois, North Carolina, South Carolina, Alabama, New Mexico, Loisiana, and Oklahoma.

  • TRANSACTION SIZE: $3,000,000 to $15,000,000

  • PRODUCT TYPE: Multi-family residential and mixed use residential/retail

  • CONTACT: Mark Mosch
    MARKM@ANDMARKFUNDS.COM