INVESTMENT CRITERIA
MBP CAPITAL – INVESTMENT CRITERIA
Target Assets | Class C through Class A- multifamily residential communities, with a focus on Class B properties; targeted properties will typically be comprised of two-story and three-story buildings in suburban settings and generally include amenities such as swimming pools, fitness centers, clubhouses, laundry facilities, dog parks, and children’s playgrounds |
Target Asset Size | Between 150 and 500 units; individual units are expected to average 750 square feet in size |
Target Total Capitalization Per-Asset | $15-50 million |
Average Investment Size | $4-10 million |
Target Leverage | Up to 75% to 80% loan-to-cost, based on “all-in” investment cost, including planned value-add capital improvements and other expenses, measured across the portfolio |
Target In-Place Occupancy |
85-95%; MBP does not anticipate making investments in properties with in-place occupancy of less than 75% unless a compelling opportunity arises; tenant leases are generally 9 to 12 months and typically require security deposits |
Target Vintage of Assets | 1975 and newer |
Expected Hold Period | 2-7 Years |