PERFORMANCE-DRIVEN. STRATEGIC INSIGHT. LONG-TERM VALUE.

Investments

Property Discovery Image

Step 1: Property Discovery & Acquisition

Once we've identified potential opportunities, our expert team filters based on key factors - including price, location and asset quality. This process ensures we only acquire investment properties that meet our goals and expectations, and that will pass the stringent underwriting process that follows.

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Step 2: Due Diligence & Final Underwriting

The initial underwriting process kicks off a comprehensive due diligence schedule that taps into our extensive structuring expertise. From onsite inspections to a financial deep-dive to mitigating potential risks while maximizing rewards, we dig deep on each potential deal, with only the most qualified moving forward.

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Step 3: Renovations, Property Development & On-going Value-Add Process

To build value, Merci Equity Partners focuses on renovation work to best position each investment property. By taking this critical step, our team is able to refresh or, in some cases, overhaul underperforming assets, increasing interest and driving rents in the right direction. This, in turn, immediately improves cash flow and long-term capital appreciation, while limiting ongoing maintenance expenses, creating a more...

Smart Search.

Buy Smart.

Fix Smart.

Investment Strategy

Our Buying Criteria

  • Asset Type
    • • Apartment Buildings
    • • Mixed Use Buildings
    • • Special Use Considered on case-by-case
  • Age of Units
    • • While our "sweet spot" is 1975 or newer, this is dependent on region
    • • Older historic properties in high rent areas
    • • Ultimately, we adjust our "buy box" to each market
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Asset Location & Quality

  • A or B class trade areas with strong rental demand
  • Vibrant local economy with near proximity of attractive anchors (hospitals, corporations, shopping, industry)
  • Class B or C properties
  • Value-add opportunities strongly preferred
  • Distressed or underperforming properties with strong potential for enhanced yields
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Target Markets

  • Nationwide strong growth markets
  • Areas in the Pathway of Progress
  • Southeast (our original market), Midwest, Southwest & other nationwide areas within our partnership
  • Generally, we will focus growth in 2 or 3 markets at a time to maintain a synergy of operations
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Target Return & Investment Period

  • Return on investment varies per project & investment range
  • ROI is based on stabilized financials
  • Asset strategy may include 3-4+ (short term) or 7-10+ (long term) year hold period
  • Generally, preferred returns paid during hold period and equity return paid upon asset sale
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Occupancy

  • 80% occupancy strongly preferred
  • Lower occupancy will be considered if property is well-located with exceptional value add upside
Occupancy Image

Other General Criteria

  • Minimum 10% after repairs and stabilization
  • Potential high yield income streams and tax savings*
  • Target cost basis at 25% below stabilized value

*Consult your legal and tax advisors for individual advice

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