INVESTMENT STRATEGY

Investment Criteria

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 Returns & Investment Period 

 
  • 8% – 12% average annual cash on cash returns

  • 14% – 20% total annual return over the full investment period                                                                                                                   ___________________________________________________________________

  • 3-5 Year hold period (multifamily assets)

  • 6-18 Month hold period (single-family fix/flip & SFR developments)

     

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

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.

NON-SPECULATIVE & CONSISTENT APPROACH

OUR STRATEGY

VALUE-ADD

  • Improving Income-Producing “B/C” Class Assets
  • 60% of return from Income / 40% from Sale
  • Multifamily Opportunity Zone Funds
  • Highest Level of Cash Flow and Flexibility

DEVELOPMENT

  • Ground-up development or salvaging “D/C” Class Assets
  • 20% of return from Income / 80% from Sale
  • Direct sales outlets to end buyers / institutional investors

CORE/CORE PLUS

  • Holding “A/B+” Class Multifamily Assets with Stabilized Income in growth markets
  • 75% of return from Income / 25% from Sale
  • Least Flexible, offering our clients a secure long-term investment option 

How It Works

Partner with Broadstreet Capital through different structures and vehicles. JV & direct ownership opportunities on select assets 

The asset(s) is acquired & placed within the portfolio or JV Entity.  Stabilization/ development process begins

Once stabilized or the development is completed the performing the asset is held until the defined exit  occurs based on specific investment objectives

 

Profits are then distributed to investors/partners, investors may choose to reinvest the capital into new opportunity or private funds allowing for significant tax advantages. Utilizing our 1031 or Opportunity Zone Fund programs.

WHY INVEST IN REAL ESTATE?

Diversify with steady income

This is a no brainer! The majority of people invest in real estate for the steady flow of cash they earn in the form of rental income. This passive income is a huge incentive to get you started by investing with a trusted firm like Broadstreet. Offering direct township opportunities with a true hands-off approach.

long-term financial security

When you have a steady flow of cash in succession, the rewards of this investment bring on financial rewards for a long time. Income producing real estate can afford investors a sense of security because of the cash-flow and property's appreciation in value over time.

real estate appreciation

The benefits of investing in real estate include the appreciation of capital assets (aka land) over a period of time. Not all markets are created equal, Broadstreet understands the timing of entry and exit is critical to ensuring the best returns for their investors.

tax benefits

This is a major reason why many choose to invest in real estate. The government offers tax breaks for property depreciation, insurance, maintenance repairs, travel expenses, legal fees, and property taxes. Real estate investors are also entitled to lower tax rates for their long-term investments. Broadstreet works with Family Offices and High Net Worth individuals to allow for direct investments into projects with 1031 exchange or an Opportunity Zone Fund.