INVESTMENT STRATEGY
Additional Resources
GID employs a disciplined research-driven investment strategy that focuses on acquiring multifamily properties in target markets that it believes are likely to experience above average long-term operating performance trends. GID has equity for and seeks Stabilized Core, Value-Add, Development Joint Venture and Earn-out/Pre-Sale multifamily transactions nationwide.
Target Markets
GID focuses on top-performing markets with the following characteristics:
- Primary Urban Markets: Markets with strong residential characteristics that accommodate a 24/7 lifestyle.
- Constraints on New Supply: Markets with barriers to entry due to regulatory constraints, land scarcity and/or the high cost of developing new inventory.
- Strong Long-Term Multifamily Demand Fundamentals: Markets with strong exposure to education and health services, technology employment and/or government employment.
- High Level of Liquidity: Markets with significant current institutional and REIT ownership.
Investment Criteria
When selecting investments GID focuses on the following key criteria:
- Pricing: GID seeks opportunities to acquire assets at cyclical market low prices to generate long-term, above-average, risk-adjusted returns.
- Opportunities for Adding Value:
- Repositioning and strategic capital improvements to cure functional obsolescence and/or to enhance curb appeal of the asset.
- Superior property management to increase NOI through aggressive revenue management resulting in increased effective rents, occupancy and resident retention.
- Increase operating efficiency to reduce operating costs.
- High-Quality Locations: Locations close to public transportation, the Central Business District or with immediate access to a primary transportation node leading to the Central Business District tend to provide a measure of recession resistance and generate rent premiums when fundamentals are strong.
- Well-Built Assets: Assets that are less likely to experience issues with water penetration and sound transmission between units and that have market competitive unit mixes, floor plan designs, finish quality and amenity packages.
- Prudent Financing: Use of moderate loan-to-value leverage and rate-protected financing for the underwritten hold period.
- Exit Strategy: Continuous reassessment of timing for investment realization based on asset performance, economic and local market conditions, the liquidity in the transaction market and general financial market conditions.