LRE’s investment strategy is grounded in identifying projects with the following traits:
Markets that exhibit strong population and economic growth, low unemployment, favorable demographics and robust housing needs.
Target assets that allow for day one, tax sheltered, cash returns.
Prefer long-term, low-cost, fixed-rate financing from the onset to mitigate interest rate risk and reduce cash flow volatility.
Target projects where the rents would be affordable to the working class that earn incomes between 60% to 120% of area median income.
Acquire assets at a discount to replacement cost, reducing supply risk while allowing for underwritten rents below new construction in the area.
Target properties with 150-500 units to create operating efficiencies and facilitate optimal exit opportunities with institutional buyers.