Target Investments
Apartments
Virtú Acquisitions has historically concentrated on value added multifamily real estate investments (apartments). We believe that the apartment market, as an investment vehicle, offers investors greater returns with less risk than other investments. The apartment market is less reliant on business cycles for occupancy and will continue to benefit from demographic trends and population growth. With a projected increase in the U.S. population of 60 million over the next 25 years the future looks bright for apartment owners.
We also feel that the multifamily ownership is more management intensive then some other asset types. This ensures a clear dichotomy between performing and non performing assets, ensuring that there will always be “value added” opportunities. Our innovative management expertise allows Virtú to take advantage of this dynamic and rely less on market conditions to produce strong returns. The typically short lease term in the apartment industry, allows us to more quickly realize gains via a property turnaround or market recovery.
Commercial Investments: Office, Industrial & Retail
Virtú’s commercial investment strategy is very similar to its core apartment business. The goal is to hedge leasing risk by purchasing multi-tenant properties. We target properties that can be purchased for below replacement cost and properties that exhibit signs of poor or absentee management. Virtú does not compete in the institutional marketplace, but rather seeks to purchase B & C properties in the $5 to $25 million range where private ownership and management upside is more prevalent. Virtú seeks cash flowing investments to provide current income, but also budgets strategic capital improvements to enhance the upside potential and to maximize appreciation. The macro economic approach is to invest in local economies that are on the rebound and to target Tier 2 & 3 cities where greater yields can be realized.
Hotel Industry
The Hotel industry is likely the most management intensive and quality dependant real estate market. This leaves room to find good opportunities when a property has had a lack of management focus and historical lack of capital spending. In addition, given the general dependency on economic cycles for the category, cap rates tend to be higher and often financing generally more difficult to obtain. Virtú’s ability to identify a well located property that ensures stable income, infuse capital into it, and secure financing give it an advantage in this category.