Edison Ashcroft will seek acquisitions ranging from $30-$60MM in capitalization, each representing approximately 250-500 residential units.
Acquisition criteria includes:
Excellent locations with strong demand drivers (job growth, limited new supply risk, population migration).
Ability to acquire below replacement cost.
Cap rate spread relative to debt yield resulting in solid cash yield component.
Moderate renovation, typically $4,000-$8,000/unit.
Light structural improvements, thereby avoiding construction risk.
Property Investment Size:
Est. Annual Cash Return:
Targeted Hold Period IRR:
Texas key markets in addition to other major MSA's across the US
Class A-, B, B+ (early 2000's to 1980's vintage)
Value add with some core plus
$30 - $60 Million
65 – 75% of Purchase Price
7.0 - 9.0%
16.0 – 18.0%
3 – 7 Years