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.
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
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
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.