Multifamily Acquisition Criteria
KRI Partners invests in multifamily assets in the southern United States. Following our multifamily acquisition criteria, the management team will consider both value-add projects and projects offering stable, predictable cash flows.
Value-Add Investment Projects
Value-add investment projects of this type are generally located in B or B+ submarkets and are such that our experienced management team can add significant value by repositioning the asset through investments in physical improvements and/or value add management improvements. Our holding period is generally much shorter and is sold or refinanced once we have stabilized the project. Overall returns are generally higher consistent with the level of risk.
Core Investment or Cash Flow Projects
Core investment or cash flow projects of this type are generally located in A or B submarkets and are usually stabilized projects that provide predictable cash flows and a reasonable cash-on-cash rate of return to our investors. This type of project is usually held longer term and improved through operational efficiencies and implementation of our "best practices." Overall returns are generally lower consistent with the level of risk.
Summary of Typical Investment Projects
|Value add projects||Core Investment Projects|
|Asset Size||75-200 Units||75-200 Units|
|Anticipated Hold Period/Capityal Event||Usually < 5 Years||Usually 5+ Years|
|Preferred Return||Approx. 6% - 7% Paid Quarterly||Approx. 6% - 7% Paid Quarterly|
|Overall Target Return (ROI)||Typically 15%+ Annualized||Typically 10% - 12% Annualized|
|Risk Tolerance||Less Conservative||More Conservative|
|Types of Investors Allowed||Typically Accredited Only||Typically Accredited Only|
"The above describes a typical deal profile for transactions historically pursued by the firm and does not necessarily represent a deal profile or target return objective of the firm going forward. For relevant current project details, you must review the relevant Private Placement Memorandum that can only be accessed with permission from a representative of the firm."