Our Acquisition Criteria
At Cores Real Estate, we are committed to investing in properties that offer strong potential for growth and value enhancement. Our acquisition criteria are designed to identify opportunities that align with our strategic goals and investment philosophy.
We focus on multifamily properties that meet the following criteria:
- Location: Properties in high growth markets on the West Coast and Southeast with strong employment drivers and easy access to amenities, public transportation, and major highways.
- Property Type: Class A and B multifamily properties, with a preference for garden style and mid-rise.
- Unit Count: Properties with a minimum of 40 units, with no upper limit on size.
- Investment size: Deals with a transaction size of $5 million to $30 million.
- Debt and Financing: Typically 65-75% LTV, depending on market and deal.
- Value-Add Potential: Properties that offer opportunities for value enhancement through operational improvements, capital improvements, or repositioning in the market.
- Financial Performance: Properties with stable occupancy rates of at least 90% and opportunities for rent growth.
Target Return Metrics
- Internal Rate of Return (IRR): Target 17%+ over a 3-5 year hold period, depending on market conditions and project execution.
- Cash-on-Cash Return: Aim for 6-10% in the early years, with improvements post-renovation and operational efficiencies.
- Equity Multiple: Expect a 1.8x to 2.0x equity multiple over the investment period, based on the projected increase in property value and income.