At Wilkinson, our over three decades of experience and proven performance track record gives us a competitive edge with our nationwide network, granting us access to prime acquisition opportunities. We meticulously screen hundreds of properties to find the one.
Acquiring Investment Assets
When it comes to investment in apartments, Wilkinson takes a purposeful and precise approach when evaluating potential acquisitions. Our acquisition criteria for multifamily funds are carefully crafted to target Value Add and Core Plus Properties, providing us with more control over both revenue and expenses, which can result in a significant enhancement of Net Operating Income (NOI).
For our multifamily funds, we have curated a portfolio consisting of numerous units across multiple properties and markets, which we believe provides the greatest potential for a well-diversified cash flow and effective risk management. We believe that through detailed acquisition criteria and meticulous due diligence, we can position our multifamily funds to leverage the proven success of the multifamily sector and deliver sustainable returns for our valued investors.
We use the following criteria to identify opportunities for investment in properties; although an individual property may not need to meet every standard to be considered:
Major Growth Market
Investing in high-potential geographic markets and neighborhoods is key to multifamily investing. We target areas with strong demand for multifamily properties, driven by population growth, job expansion, rent growth and economic development. We prioritize locations with projected five- to ten-year growth paths for optimal investment exits and the best investments for passive income.
Attractive Property Types
The best multifamily investments target Value Add and Core Plus properties. These assets offer opportunities to enhance Net Operating Income and force appreciation through renovations and operational improvements. We focus on properties in desirable locations with strong fundamentals to ensure consistent cash flow and appreciation potential.
Market-Rate Rents
We believe that near market-rate rents on acquisitions give us the foundation and the flexibility to build lease-pricing strategies based on market demand. Therefore, we seek to limit the number of government assistance or tax credit properties in an individual fund’s portfolio. Our analysis includes local rent trends, competitive price per square foot, amenities, new developments, and dozens of other economic conditions to identify assets with strong revenue potential.
Confirmed Growth
We evaluate locations based on demographics, local growth plans, and in-person market assessments. We strive to acquire fund assets with five- to 10-year growth plans, ensuring optimal exits and aligning with our property investment strategies for sustained returns.
Year-2000 or Newer Construction
We prioritize properties built in 2000 or later, though older properties will be considered if we believe they are located in a B+ or better areas with a significant value-add story. This focus supports our aim to deliver the best investments for passive income with reduced maintenance risks.
Favorable Purchase Price
A key element of our real estate investment strategies is negotiating purchase prices at or below replacement cost. This approach enhances value creation and supports long-term profitability for our multifamily funds.
