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The Hunt for Yield

Interest rates are low, inflation is rearing its head and equity markets are at all-time highs.  This puts many investors at a crossroads and in need of a strategy that can generate income, hedge against inflation, and is largely secular to the equity markets, and our recommendation would be to look at investing in commercial real estate.

 

There was a time when commercial real estate investing for a retail investor was speculative and the barriers to entry in acquiring high quality institutional assets proved to be high.  Recent policy developments have led to accredited investors being able to access these prized assets and benefit from the income, appreciation and tax benefits once only available to large institutions.  Not all commercial real estate has performed well however, with retail and hospitality properties bearing the brunt of negative effects of the pandemic over the past year.  On the other hand, one of the shining stars in commercial real estate has been multifamily properties owing to the basic fact that people will always need a place to live.

 

Within multifamily properties, B-Class middle income housing has proven to be a strong performer simply by being in the middle.  It is the largest pool of renters who may have student debt or are unable to afford a down payment and are likely to remain renters for an extended period of time.  In times of economic boom, renters in C-Class apartments will upgrade to B-Class and in times of economic uncertainty, A-Class apartment residents will trade down to a B-Class community to save money.  Being in the middle is comfortable, relatively safe and lucrative.

 

With regards to income and returns, B-Class properties can punch above their weight when combined with a “value add” strategy.  This involves exterior and interior updates that bring the property up to modern standards, commanding higher rents and driving the overall value of the property upwards.  Investors can enjoy a passive stream of tax advantaged income from the property starting on the very first day of investment and will see these cash-on-cash returns grow as the capital improvement plan progresses and the rents grow.  At the end of a typical holding period of 5-7 years, the property can be sold, refinanced or rolled tax-free into a different property.  This is where the value of the property improvement process is realized, delivering strong returns on the backend at a capital event. 

 

Between the income, tax benefits, appreciation, and principal protection of owning a real, stabilized asset, a pivot towards a multifamily investment strategy may be exactly what a sound investment portfolio needs in these times.  

 

A great place to start is our FUND PAGE and INVESTOR DECK

As always, if you’d like to discuss any of these points further,
you can reach out to us at info@yankee-capital.com

 

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Yankee Capital Partners Announces the Launch of the YCP Value Fund II

Lynnfield based real estate investment firm kicks off 2021 with plans to acquire their next multifamily property

 

Lynnfield, MA, February 24, 2021 – Yankee Capital Partners (YCP), the multifamily real estate investment firm, today announced the launch of their new fund, the YCP Value Fund II. The firm specializes in acquiring and optimizing B Class multifamily housing in markets selected with a data-driven approach. This new round of funding comes on the heels of proven success of this investment strategy in 2019 and 2020, setting the company on a trajectory for rapid growth in 2021.  This ‘value add’ strategy allows YCP to deliver strong investment returns and value to their accredited investor clients.  The new fund will also create opportunities for further investment in several emerging and high opportunity markets, including Texas and the Carolinas.  

“The Value Fund II is an exciting milestone for YCP and builds on the momentum the team has built so far,” said Ravee Dave, Founder, and CEO of YCP.

“We’re delighted to offer accredited investors access to commercial real estate, in particular multifamily assets, that are usually only available to institutional investors.  Our clients enjoy participating in the income and appreciation of a real, stabilized property, and we look forward to increasing our investor base with this new fund.”

 Upgrading the properties’ exterior and interiors are at the forefront of the YCP strategy. 

“We really set ourselves apart in that we have in-house construction expertise and are able to implement our value add strategy and improve these properties at a lower cost than our competitors to the benefit of our investors.  We continue to build on our construction and investment track record and can now welcome new investors to our next project,” said Edward Sarkisyan, Yankee Capital Partners’ COO. 

With growing interest in the sector, the YCP Value Fund II is already gaining traction with investors and the advisors who serve them.  Together, the YCP team and their investors recognize the need for access to diversification away from the traditional stock and bond markets while enjoying strong, risk-adjusted returns.  The team looks forward to further expansion and funding in 2021. 

 

About Yankee Capital Partners 

Yankee Capital Partners is a real estate investment company located in Lynnfield, Massachusetts.  YCP pools investor funds to acquire and reposition multifamily properties through a value add strategy, delivering strong returns and cash flow to its investors.  With a seasoned team of real estate investment and construction project management professionals, YCP is uniquely positioned to capture maximum value in each of its deals. 

http://yankee-capital.com/