Delarosa Asset Management LLC (“Delarosa”) is a real estate investment company and owner/operator of multifamily apartment complexes. Our acquisition strategy is focused on garden-style, low-density apartment communities either in financial distress or exhibiting value-add potential, in both secondary and tertiary markets. These acquisitions must offer compelling opportunities to add value at significant discounts to intrinsic values as well as a discount to replacement costs.
Delarosa’s cornerstone objective on behalf of our investors is to identify and isolate Class B/ C+ multifamily units offering superior returns. Capital preservation, steady operational cash flow and long term capital appreciation are the hallmark characteristics of a Delarosa investment. Much of the foregoing is achieved through a combination of cost-effective operational management and capital improvements. Many of the properties we look at are owned and operated by families or less sophisticated investors who may not have the skill required to improve the operational efficiencies as well as the overall value of the property.
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MULTI-FAMILY INVESTMENT CRITERIA
Based on Delarosa’s experience investing in and managing a portfolio of multifamily units, we identify investment opportunities based on the following criteria:
Garden style apartment buildings no more than 50 years old;
40-250 units per a complex;
Location in secondary and tertiary suburban areas with improving labor markets, solid school systems and easy access to major metropolitan districts;
Limited stock of available units with barriers to entry;
State’s with landlord friendly legislation;
Tenant base of both grey collar and blue collar workers
Sustainable rent growth and reasonable expectations for low vacancy rates;
Potential to rehabilitate and re-position property with reasonable capital improvements to enhance its physical characteristics to create increased value.
Being smaller in size than other multifamily operators gives Delarosa a distinct competitive advantage. Inefficiencies as a result of multiple layers of management and administrative functions create unnecessary overhead expense that must be allocated amongst the numerous properties.
Our size enables us to operate under the radar and isolate smaller properties (under 250 units) that might offer superior returns, but are considered too small for institutional investors and private equity firms to pursue. Oftentimes, these larger investment pools compete with foreign investors who have a strong appetite for U.S. property and are content to accept lower yields. In addition, the big players are expected to put investors’ cash to work immediately. As a result, they are more likely to overpay for an asset, leading to inferior returns.
To discuss opportunities to invest with Delarosa, please contact Evan Shweky at 646-596-5258 or