Astre Capital’s Property Acquisition and Investment Strategy

Astre Capital’s Property Acquisition and Investment Strategy

An overview of how we locate, buy, hold, and sell investment properties

Astre’s disciplined investment approach focuses on targeting high-quality, well-located properties. We aim to identify assets in markets with strong multifamily fundamentals, employment growth, population growth and other key demand drivers. All the properties we acquire have value-add characteristics that include the ability to reposition the asset through capital improvements and upgrades, renovating the interior units, improving operations, decreasing expenses, and creating other revenue generating streams.

Choosing the Optimal Market

Astre Capital relies on extensive market research to identify the most profitable target markets poised for above-average growth. Multi-million-dollar investments require more than just a study of property Financials. In addition to knowing “the numbers,” we seek to comprehend the market intimately from a cultural and economic perspective. Employing advanced research techniques increases our understanding of the potential of the property, the neighborhood, and region as a whole. Our process reduces the overall risk of the investment, preserves investor capital, and ultimately solidifies our record of obtaining consistent profits.

Concentrating efforts to acquire multi-family properties in major metropolitan areas with specific characteristics increase investor returns and mitigate inherent risks. Characteristics which impact our investment decision includes area population and job growth, diversity within the community, employer profiles, new business projections, and current vacancy rates.

Investment Analysis

Targeted due diligence, during the property investigation process, increases the return rate and limits the downside risk of the investment. Astre Capital leverages a deep broker network to source the most profitable deals.

After identifying a potential property, our meticulous due diligence process enables us to detect assets with the highest profit potential based on our value-add practices. By discovering the underlying value of the asset, compared to other performance criteria, we understand the fundamental worth of every investment opportunity and its income potential in various economic climates. Such measures not only increase short-term profits, in the form of higher rents but command top dollar at the time of the sale.

To limit the potential downside risk, we utilize conservative underwriting practices. An investment is only as good as the assumptions used in the decision-making process. Rather than relying on aggressive assumptions with regard to rent and expense growth, taxation, and interest charges, which might inflate investment projections, we use conservative calculations. Furthermore, we conduct a sensitivity analysis to obtain downside protection.

It is our philosophy to under promise and over deliver. Optimizing assumptions can fall short due to economic or market influences beyond our control.

Value-Add Process

With the goal of optimizing the underlying value of the property, Astre Capital develops a customized business plan for every multi-family real estate asset,prior to the acquisition. We employ a balance of asset renovation, improving management efficiencies to lower operating costs, and re-branding and/or re-positioning the property. We seek cost-effective upgrades with high upside value.

Acute attention to detail and execution of the business plan after the acquisition, maximize revenues and accelerates appreciation.

 In addition to the focus on finances, our comprehensive strategic plan always includes asset improvements which enhance the experience of residents and increase occupancy rates.Happy residents renew leases, are willing to pay higher rental rates for improved community and living space, and reduce costs related to tenant turnover.

Asset Management

After the transfer of ownership occurs, Astre Capital immediately implements a process to identify operational inefficiencies, address managerial challenges, and look for ways to leverage technology. Employing expert property management techniques maximize cash flow. An efficient management team and cost-effective processes, lower operating costs and increase profits for investors.

 In addition to the focus on finances, our comprehensive strategic plan always includes asset improvements which enhance the experience of residents and increase occupancy rates.Happy residents renew leases, are willing to pay higher rental rates for improved community and living space, and reduce costs related to tenant turnover.

 

Exit Strategies

Astre Capital strives to produce a return of investor capital within a five-year window. Market conditions and economic factors can alter the target exit timetable and strategy, in order to keep our investors best interest top of mind.

To achieve a successful exit, we either sell or refinance the investment, providing estimated long-term returns between 18 and 22%, including gains from the sale of the property. Our exit strategies reflect our commitment to fostering lasting relationships with investors.

As a trusted real estate syndication company, we dedicate our efforts to preserving and growing investor capital, by structuring agreements to pay investors first. Market conditions and the specific characteristics of each investment property requires a dynamic approach, which considers unique financing and exit strategies at the end of each ownership cycle.

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