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Multifamily Investment Programs Tax Credit Development and Syndication The principals of Stratford Capital have an extensive 14-year track record in the syndication and development of affordable housing properties utilizing Low-Income Housing Tax Credits alone, or in combination with Federal and State Historic Tax Credits (collectively, the “Tax Credits”). During this time, the principals of Stratford Capital have also raised approximately $420 million in equity for Tax Credit Transactions from more than 60 corporate and institutional clients, including Morgan Stanley, SunTrust and American Express. We are currently developing a tax credit property in Weymouth, Massachusetts involving the adaptive re-use and substantial renovation of the historic Alice Fulton School. The redevelopment of this project was awarded to Stratford Capital Group through the Town of Weymouth’s issuance of a competitive Request for Proposal. The development includes 63 apartment units, 100% of which will be affordable. The development will be financed utilizing multiple layers of financing, including Low Income Housing Tax Credits issued through the Massachusetts Department of Housing and Community Development, Federal and Massachusetts State Historic Tax Credits, Affordable Housing Trust Funds, HOME Funds and a permanent loan from MassHousing. The projected total development cost is approximately $15 million. The principals of the Stratford Capital Group have been involved in the adaptive re-use and renovation of several historic schools including the Samuel Brown School located in Peabody, Massachusetts; the Corcoran School located in Clinton, Massachusetts; East Junior High located in Watertown, Massachusetts; and the Cameron School located in Lenox, Massachusetts. Also, the principals of Stratford Capital have been involved in the successful development/redevelopment of 49 properties utilizing Tax Credits. Value-Added Multifamily Investments
Our goal is to make intermediate-term investments in multifamily rental properties and portfolios that have the potential for value creation through moderate rehabilitation and/or new property and asset management. We identify undervalued multifamily properties which can be acquired at favorable purchase prices because of any number of issues, such as: (i) above average economic vacancy, (ii) weak property management, (iii) deferred maintenance, (iv) inefficient utility structures, or, (v) cumbersome existing financing. We structure value-added multifamily investments either as “one-off” investments, or in single or multi-investor fund formats. These can also be structured as Tenant-In-Common (TIC) investments using 1031 exchange money or as co-investments with institutional partners. Each investment is typically held for 3 to 7 years. The exit strategy for investors is either a market sale or, in the case of a joint venture investment, a TIC “take out” of the property at fair market value. A typical example would be Cameron Crossing Apartments in Greenville, South Carolina. This property was originally constructed in 2004 utilizing financing obtained through a U.S. Department of Agriculture (“USDA”) loan program. Rigid rent restrictions required by the USDA loan resulted in a lender foreclosure, which allowed Stratford Capital to acquire the property with an institutional partner at a price substantially below its appraised value and replacement cost. It is expected that after a 12- to 36-month stabilization period, a market sale or TIC “take out” will be negotiated. Target properties are located in strong, secondary markets that have above average long-term growth potential. Our focus is on markets that are in Mid-Atlantic, Southeast, Northeast, Southwest and selected Upper Midwest cities. Investment Analysis Stratford Capital invests in only one property type – multifamily residential rental apartment properties where we believe we can add value. We believe that this asset class-specific focus creates an enhanced and thorough understanding of acquisition candidates and their respective markets leading to more informed and timely decisions needed in this highly competitive acquisition and financing environment. We employ a disciplined and iterative approach towards targeting and acquiring conventional apartment complexes with the ultimate aim of creating value by maximizing property net operating income (“NOI”). We typically make investments in properties that we believe have intrinsic value and a competitive acquisition basis. Stratford Capital targets properties that are C+ to B class properties in B to A- class locations. Properties targeted for acquisition are generally in need of moderate rehabilitation and/or improved property and asset management in order to better compete within their respective submarkets and realize their NOI potential. The property acquisition process employed by Stratford Capital is best described as being detailed, rigorous and focused, and our results to date have been impressive. The following is a brief overview of our key property acquisition elements: Process Profile Underwriting |
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CASE HISTORIES AT A GLANCE Breckinridge Square Apartments
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