OUR STRATEGY

Investment Criteria

$10-50M

~ Deal Size

8-10+%

~ Annual Cash Yield

13-15%

~ Net IRR to Investors

7-10 

Average Hold Time (yrs)

Strategy

FMC’s investment strategy is focused on the identification of off-market or minimally-marketed class A, B and C multifamily assets. We invest in select secondary and tertiary markets that we believe possess the ‘perfect storm’ of strong job growth, positive in-migration, and a diversity of economic drivers. We also seek out markets that have a low cost of living and a low rent to wage ratio, under 25%. Our purchase price must also be below replacement cost, and all target acquisitions possess some level of operational and/or physical deficiency, the ‘value-add’ component.

Within the local submarket, we seek out assets that are located near large employment and retail centers, primary thoroughfares, public transportation access points, and/or quality school systems. By matching these criteria with our detailed multi-phase underwriting process, we are able to effectively manage portfolio downside risk from the start.

In summary, FMC focuses on multifamily investment opportunities where there is some level of fiscal or physical disconnect between the owner and/or manager and the asset. We specialize in identifying that disconnect and developing an appropriate repositioning strategy, which typically involves capital upgrades, utilizing more sophisticated property management, and implementing our institutional-grade asset management platform.

“There is no singular recipe for execution; we leverage our deep equity, debt, legal and risk-management relationships to create the optimal investment structure suitable for each asset.”
Identify off-market and underperforming real estate assets in irreplaceable locations and begin multi-phase evaluation of local market data, including crime, job/wage growth, cost of living indexes, as well as third-party consultant lease audits, insurance review, and property tax modeling.
Actively reposition the asset, enhance management, and increase NOI to create value for our capital partners and balance our dual goals of short-term income and long-term asset appreciation.
Execute our property-specific business plan from acquisition through the stabilization, recapitalization, and disposition of each asset, capturing superior returns in a competitive investment landscape.
 

Target Markets

Below are FMC’s current target markets, but we are always reviewing regional economic and real estate trends and update our markets accordingly.

Meet the Team