Post has developed a series real estate investment strategies that employ risk-adjusted methodologies. Post relies exclusively on value creation of holdings to attain yields, not cap rate contraction. In adhering to this investment methodology, Post is able to identify holdings that are strategically predisposed to weather declining global fundamentals and inversely positioned to achieve exceptional returns in the event of a return to normalcy.
Depending on the inflection point of the real estate cycle, Post focuses primarily on targeted strategies within the multi-family asset class:
Distress: These assets tend to suffer from significant vacancies and loss to lease in relation to surrounding area and market comparables. The properties have substantial deferred maintenance to the exterior, amenities and unit interiors which require an infusion of capital to bring in line with competitors. They can be purchased for low market capitalizations compounded by minimal to negative initial cash yields, which are offset by the tremendous value generation associated with lease up and rental rate mark to market. This acquisition class typically has a 18 month to 3 year investment term.
Core-Plus / Opportunistic Value Add: These assets are relatively stabilized with high occupancy and little loss to lease. The opportunity is associated with identifying assets with considerable operational inefficiencies or the ability to financially engineer attractive yields. These deals tend to be in need of capital infusion of between $3,000 per unit and $5,000 per unit in order to achieve optimal market performance. These transactions are cash flow positive day one with and have a 4 to 10 year investment term.
Development: Post actively develops new multi-family product utilizing both the conventional financing markets and the government-backed HUD 221 (D)4 loan program. This asset class has an investment horizon of approximately 7 to 10 years, yet retains short term exceptional yield potential should product be delivered into an aggressive investment market.
Low Income Housing Tax Credit (LIHTC): These assets are stable with high occupancy and little to no loss to lease. The opportunity is to acquire newer vintage assets at cap rates wider than their conventional asset counterparts. LIHTC deals enable Post to purchase higher quality assets in barrier to entry markets at yield metrics typically reminiscent of far riskier holdings. These assets have a lower yield projection as a function of the reduced risk coefficient, yet typically exhibit strong walk in cash on cash returns. This acquisition class typically has a 10 year investment term.
High Yield Debt: Post provides short term bridge loans ranging in term from three months to two years to real estate investors typically engaged in strategies that include single family residential “fix and flip”, single and multi-family ground up development, land entitlement and multi-family re-positioning. This strategy enables both Post principals and its investors the ability to achieve returns commensurate with equity investments while taking the risk typically associated with investing in the debt side of the capital stack.