Target Markets

  Asset Characteristics: 

• 120 units and above 
• 1980s and newer with very strong preference to 1990+
• Garden style to mid-rise multifamily 
• History of 90+%occupancy 
• In place loss to lease where competitor rents, for similar vintage and property class, are materially higher than subject 
• Class C or better property in B or better location 

Deal Metrics:

• $25 million max purchase price
• 15+% IRR

We employ various value maximization strategies, including replacing / training property staff, overall remodeling and upgrades, capital improvements, and hands-on, day-to-day asset management to ensure a reliable, attractive return to investors.  Falcon Capital Management implements selected business plans using a milestone tracking system with its asset managers, focusing efforts and creating accountability to meet time specific goals for each asset. 

• Value-add opportunities through renovation, repositioning, owner mismanagement, operational inefficiencies and geographic synergy.
• Opportunistic investments which are typically more capital intensive than value-add, but with higher projected returns.
• Market targeting and arbitrage where we believe there are inefficiencies or catalyst in the market and the pricing does not truly reflect market or potential market fundamentals. Deep market analysis, timing and selection is done semi-annually.
• Off-market transactions sourced through our extensive broker network to find investment opportunities that may not always be known to the general investment community.
• Utilize tax advantages unique to real estate to help maximize returns for our investors.

Falcon Capital Management's multi-family division couples its strategic geographic selection with the acquisition of value-add assets and combines them with a solid operational model to deliver market leading returns.  Our investment philosophy has been shaped over multiple market cycles and we employ cycle theory to the timing and location of our investments.  Falcon’s proven multi-family investment philosophy and process is based on four key principles: Product, Markets, Discipline, and Value Creation.

• Product – Focus on value add product in geographies that show specific fundamentals that will drive demand and rental growth. Leverage our experience and core competencies to ensure we execute at a high level.
• Markets – We evaluate markets on an quarterly basis and monitor at over 100 metrics that have proven to be drivers in the multi-family space.
• Discipline – We use industry-leading and proprietary systems to evaluate opportunities, typically analyzing over a hundred deals before selecting one to purchase. We believe real estate to be a cyclical business requiring awareness of historical trends and methodologies to mitigate risk and enhance long-term yields.
• Value Creation –The creation of value is a multifaceted and continuous process. Sophistication in the following areas are a tenet to the success of the business: operations, investment strategy, risk management, deep networks, construction execution, financial analysis, and information technology.

We utilize in-house data collected over decades of operating in the workforce housing sector to analyze new investments and determine the viability of specific asset enhancement strategies.