PRESERVE CAPITAL & GROW WEALTH
Our core investment focus is on capital preservation and current income. Accordingly, we invest in select Midwestern markets we know well. We have been investing in the Midwest since 2006 because these markets offer stability and attractive current cash flows along with the ability to consistenty generate meaningful capital appreciation. This has allowed us to grow wealth on a tax-adavantaged basis.
We align interests by co-investing meaningfully in every asset we purchase, by minimizing fees, and by subordinating our economic interests to those of our partners. In addition, we are vertically integrated. This means we have fully developed internal asset management and property management capabilities, and we commit these capabilities to maximize the value each asset. By aligning our capital and management interests alongside those of our investment partners, we can maximize opportunities to achieve superior financial returns for all.
We seek to add value. Successful value-add investing requires the ability to identify assets that are under performing due to inexperienced ownership, poorly capitalized ownership, management fatigue and/or deferred cosmetic maintenance. Any of these conditions can create opportunities to acquire assets at prices below their true intrinsic value. Most important, we employ highly conservative underwriting and valuation techniques when acquiring and financing these assets, because we know that our purchase price is the one thing we cannot fix after closing.
BUILD DURABLE, TAX EFFICIENT CASH FLOWS
After closing, we invest carefully in accretive interior and exterior upgrades to grow durable cash flows over time. By creating and growing enduring cash flows over time, we can help preserve wealth and create the potential for meaningful capital appreciation.
We favor longer hold periods because this reduces investment drag from both property taxes and income taxes. For this reason, we also prefer to return capital and profits through the distribution of refinancing proceed rather than from an outright sale. From a tax perspective, returning capital & profits from refinancing proceeds is more efficient because income from sale proceeds generates an immediate tax liability, whereas income from refinancing proceeds does not.
We invest in the communities we serve. We do this by implementing extensive, multi-year capital improvement programs in each property, thereby improving the quality of local housing opportunities. We also make local investments in support of the following three key themes:
- Health & Well-being
We support these three key themes at the property level by organizing and leading local initiatives such as annual back-to-school supply drives and annual holiday toy drives for families in need. At the corporate level we provide support through annual investments in local community organizations like Cincinnati Works and GeneroCity 513 in Cincinnati, Junior Achievement in Southwest Ohio, and the Foundation for Youth in Columbus, Indiana.