INVESTMENT STRATEGY
VREC Targets Underperforming Multifamily Apartments in the Midwest
Why the Midwest?
While many investors focus on the boom-and-bust markets of the sunbelt, Venture's strategy has always focused on the stable, reliable, and affordable submarkets of the Midwest. Cities like Cincinnati, Columbus, and Indianapolis offer substantial stability and upside, all while maintaining the affordability that has made the Midwest an attractive destination for businesses and young families seeking stability.
Few are aware that Ohio, our home state, is the 7th most populous state in the country, or that it has the 5th most Fortune 500 Companies. There are jobs aplenty, and with the affordability crisis in full swing, the Midwest is quickly becoming an attractive option for both employers and employees looking to plant roots.
Venture's Key Investment Criteria
01
Class C & B, 100 Units+
Distressed or stale assets in need of repositioning, renovation, and professional management.
02
Strong Submarkets
Positive net migration, above average schools, low overall crime, essential employment. Proximity to public transport, shopping, recreation, and interstates.
03
Fundamentals
Target rental rates are lower than home ownership cost and less than 30% of household income. Low overall new supply, high barrier to entry.
04
Clear Upside
Rental rates 25-50% below market due to substandard accomodations and management. Purchase price less than 50% below replacement cost.
05
Conservative Return Targets
Our conservative underwriting must result in a 7-8% cash on cash return* at stabilization for investors and a 12-15% IRR*. While nothing is guaranteed, we must feel comfortable that there is a clear path to these targets with conservative assumptions, fixed rate debt, and low LTVs.
