Investment Criteria
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Broadstreet primarily targets undervalued residential real estate assets & new development opportunities. These investments have operational inefficiencies and value-add opportunities but have strong sub-market underpinnings of population growth, employment growth, and income growth with higher barriers to entry. Target assets must have excellent long-term potential and provide immediate opportunities to add value at the property-level. These types of investments require immediate capital injections that will generate cash flow and provide attractive yields once fully stabilized or developed. Returns are maximized by either refinancing with long-term debt and returning a significant portion of equity to investors, or exiting the investment at an opportune time based on local market trends.
Target Markets
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Broadstreet Capital targets markets in the Midwest, Southeast and Sunbelt sections of the country. MSA’s: Detroit, Lansing, Grand Rapids, Dallas-Fort Worth, Houston, Atlanta, Raleigh-Durham.
Here are a few points we look for when selecting projects and markets:
Strong expected population growth in the selected market
Job growth increasing, new business coming to the market
Value-add components with a way for us to force appreciation
Positioned within the cities path of progress – Opportunity Zones
Currently undervalued or land positioned for development
Approach on Generating Returns
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Broadstreet’s strategic approach to property improvement and asset management generate higher returns by adding value through some of the follow:
1) Improving units that will directly generate higher rental rates while reducing long-term maintenance
2) Creating or increasing “other income streams” while providing additional value and services for residents
3) Aggressive land acquisitions for group-up development in high growth markets
Preservation of Capital
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Broadstreet will not speculate and overpay for real estate, rather it finds opportunities that can be purchased at below replacement cost with stable recurring cash flow. Our #1 objective is to protect and preserve investor capital while maximizing cash-on-cash returns during the entire time of ownership. This bodes well for our investors that are focused on the long-term goal of maintaining and growing wealth consistently instead of through riskier investments vulnerable to losses.