The Growth eREIT focuses on acquiring and owning commercial real estate assets that have the potential to appreciate in value over time. This opportunistic investment strategy is centered primarily on multi-family assets of institutional quality that are sub-institutional in size.
The Growth eREIT has followed three core principles in selecting potential assets:
- Workforce Housing: There is a growing need for affordably-priced apartments, referred to as “workforce housing”. However, there is a limited supply of existing apartments that meet that demand. The result is that affordably priced apartments face little competition from newly built apartments. We believe this growing demand and lack of supply will result in existing workforce housing increasing in value over time.
- Low cost basis: The Growth eREIT seeks to acquire properties below their replacement cost, a strategy known as “value investing”. In other words, the price paid to acquire a property is less than what it would cost someone else to build a similar property in the same location today.
- Long-term fixed financing: Interest rates on loans for acquiring apartment buildings are at historic lows. By securing long-term, fixed rate debt today, the Growth eREIT is able to maximize consistent cash-flow while also reducing volatility over the term of the investment.