Acquisition Selection Process

CALCAP’s acquisition selection process starts with specific investment criteria and is designed to identify opportunities which present the most likely case for delivering stated objectives and results.

Constantly analyzing markets and properties to ultimately get a deal that fits the investment criteria or makes sense financially.

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Looking to Sell?  Get in touch with us to learn more about CALCAP’s investment criteria and our acquisition and disposition process and requirements.

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Markets

CALCAP’s investment approach starts with deep understanding of the markets we invest in.

• Focused on markets with strong population and employment
growth projections and where there are solid economic drivers
and industry diversification
• Sub-markets with good supply/demand fundamentals
• Markets showing positive demographic trends

Assets

We are narrowly focused on demographically driven real estate asset investments.

• Generally look for assets that can be acquired below replacement cost and can generate above market returns to our investors
• Focused on single family and multi-family assets between 50-350 units where we can drive revenue growth with value add asset rehabilitation and re-positioning strategies

Image: Disciplined Exit Processes

Current Investment Requirements:

• Predictable income from current operations
• Steady and consistent cash flow
• Cash flow driven investor returns vs. price appreciation driven investor returns

Disposition Hierarchy

CALCAP disposition process is based on a disciplined and subjective process which has allowed it to maximize investor returns through timely asset sales.

Considerations include:

  • Asset Performance
  • Hold Period
  • Financing
  • Investor Return Expectations
  • Investment Committee Policy Triggers

Geographic Focus

  • Targeted to select states
  • Major cities with >1 million+ population
  • Solid market demographics
  • Submarkets within 30 miles of MSA

Asset Specific Focus

  • Acquisitions up to $25MM
  • 1980’s vintage or newer
  • Multi-Family over 75 units
  • SFR Portfolio over 20+ units
  • Senior Communities varying sizes

Financial Analytics

  • Target Low to Mid-Teens Returns
  • Target Gross Rent Multiplier (GRM) of <8X
  • Target Going in CAP Rate minimum of 5%
  • Hold periods between 5-10 years
  • 1.40 -1.50+ Debt Service Coverage Ratio (DSCR) based on in-place rents
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