Investment Strategy
Acquire at the dislocation. Reconfigure for families. Hold under agency debt.
A programmatic approach to producing and preserving family-sized rental housing in Washington, D.C. — stewarded under long-duration agency debt and priced to clear durable demand from the District's large-household renter base.
Thesis
The District's housing market has systematically under-produced the unit sizes families actually need — three- and four-bedroom homes.
New deliveries in the city skew heavily toward studios and one-bedrooms sized for single-earner professionals. The stabilized supply of larger family-sized rental homes is aging, fragmenting into distressed ownership, or leaving the long-term rental rolls altogether. We treat that gap as the operating mandate of the firm.
I.
Acquire
Acquire at the dislocation.
We target multifamily assets inside the District that are structurally mispriced: distressed ownership, under-managed operations, functional obsolescence, or capital structures that the current owner cannot rehabilitate. These are the buildings that institutional capital tends to pass over — too small for a megafund, too large for a retail landlord — and that merchant operators tend to under-invest in.
Our acquisition discipline is specific rather than opportunistic. We look for 25–50 unit multifamily assets, in neighborhoods where family households already live and want to stay, where the physical plan can accommodate unit reconfiguration, and where the resulting stabilized rent band can clear durable long-term demand under agency debt.
- Check size
- 25–50 units
- Geography
- D.C. only
- Condition
- Value-add
II.
Reconfigure
Reconfigure for the families the market skipped.
Our value-add program is oriented toward the unit types the District's supply chain has failed to produce: three- and four-bedroom apartments. We rework plans, consolidate smaller units, and reintroduce family-sized homes into buildings that had been chopped up toward studio and one-bedroom density during earlier cycles.
Those larger reconfigured homes are priced and operated to clear durable long-term demand from the District's family-sized renter base. The city's stabilized rental stock is meaningfully short of three- and four-bedroom homes at that scale. Matching supply to that structural gap is the clearest line we can draw between private capital and a public-purpose outcome.
Scope, renovation standard, and capital budget are all chosen with agency-debt underwriting as the downstream test: can this unit, operated well, clear its debt service and reserve obligations over a full agency term? If not, the scope is wrong.
III.
Hold
Hold under long-duration agency debt.
The exit, for us, is not a sale. The exit is a refinance into permanent agency paper — Fannie Mae, Freddie Mac, or FHA/HUD — structured for a ten-, twelve-, or fifteen-year term with modest leverage and meaningful reserves. That refinance releases the acquisition capital and sets the asset onto a multi-decade ownership track.
Agency debt is not a decoration on a value-add deal. It is the discipline that governs every decision upstream: the unit mix we choose, the rent band we operate into, the tenant programs we accept, and the renovation scope we do and do not fund. It is how a private firm commits structurally to stewardship rather than exit.
- Debt programs
- Fannie · Freddie · HUD
- Target term
- 10–15 years
- Intended hold
- Generational
Process
From acquisition to agency exit.
Every asset moves through the same five-stage sequence. The sequence is public because it is the commitment we make to our capital partners.
- 01
Source
Off-market and lightly-marketed D.C. multifamily; broker relationships and distressed-owner outreach.
- 02
Underwrite
Physical, capital, and income plan — stress-tested against agency debt-service coverage and durable long-term rent assumptions.
- 03
Close
Bridge or balance-sheet acquisition capital. Alignment on scope, timeline, and exit structure documented at close.
- 04
Reposition
Reconfigure unit mix. Renovate to institutional standard. Stabilize tenancy into family-sized long-term occupancy.
- 05
Agency exit
Refinance into long-duration Fannie, Freddie, or HUD debt. Transition to permanent hold and programmatic operation.