Tag: value-add real estate
Webinar 5 – Thrive in ’25: Faris Capital Partners
Introduction
The real estate investment landscape is ever-evolving, and one area garnering significant interest among Canadian investors is U.S. multifamily properties. In a recent webinar hosted by Westcliff, key insights into this lucrative market segment were shared by the Faris Capital Partners team. From exploring the intricacies of cross-border investments to understanding strategic execution, this session was a treasure trove of information for potential investors.
An Overview: Faris Capital Partners’ Approach
The session began with an overview provided by Kaz Jaffer and Addy Saeed, introducing the audience to the experts from Faris Capital Partners – Mark Faris and John Makarewicz. They dived into the ethos that drives their business, which fundamentally revolves around three pillars: Learn, Invest, and Manage. This philosophy underscores their commitment to providing an enriched investor experience, underlined by transparency and operational excellence.
Mark Faris’ Journey and Expertise
Mark shared his personal journey from playing hockey to becoming a pivotal figure in real estate, highlighting the transition from residential real estate in Canada to multifamily investments in the U.S. His realization of the untapped potential in the U.S. market, primarily in states like Florida, Georgia, and South Carolina, stemmed from challenges faced in Canada due to rent controls and other constraints.
Differentiators: Why Faris Capital Stands Out
Faris Capital distinguishes itself in the crowded investment real estate field through its robust team and proactive execution strategies. They focus on creating tax-efficient structures for Canadian investors, ensuring a seamless investing experience. Moreover, their unique 28-day transformation plan for property upgrades stands as a testament to their commitment to delivering value and enhancing properties swiftly to maximize returns.
John Makarewicz’s Insights on Investment Philosophy and Core Values
John elaborated on the core values and philosophies that drive Faris Capital’s operations. A genuine love of people, wise decision-making, and a commitment to first-class service are central to their operations. Their approach to investing is not just about financial returns but also providing an exceptional resident experience, ensuring longevity and stability in their investments.
Delving into the Multifamily Investment Thesis
Faris Capital’s investment thesis is built on acquiring assets that are well-located in economically diverse areas with population growth. They prioritize properties offering immediate cash flow and opportunities for value-add renovations. By targeting properties in business-friendly states with low crime rates and affordable housing, they mitigate risks and position for long-term growth.
Managing Risks: Climate and Insurance
A pertinent discussion point was the management of risks associated with climate and insurance, notably in states prone to weather impacts like Florida. Faris Capital proactively seeks out properties in safe zones and collaborates with robust insurance partnerships to ensure their investments are protected against unforeseen climatic events.
Investment Strategies for Canadian Investors
For Canadian investors interested in U.S. opportunities, Faris Capital offers a sophisticated structure via a Canadian Limited Partnership, which simplifies tax efficiencies and reporting. This strategy negates the need for double taxation and provides investors with U.S. dollar distributions, easing the complexities often associated with cross-border real estate investments.
Conclusion
The Westcliff webinar with Faris Capital Partners underscored the potential of U.S. multifamily investments for Canadian investors. Through their strategic approaches and unwavering commitment to value, Faris Capital offers a compelling portfolio option for those looking to diversify and capitalize on the U.S. real estate market. For more insights, investors are encouraged to reach out and explore this opportunity further.
Call to Action
To dive deeper into U.S. multifamily investing, consider booking a call with Westcliff or joining their investor network. Stay informed through their weekly podcast, and don’t hesitate to connect for further educational resources.
Contact Information
For more information, reach out to Westcliff via email at info@westcliffam.com or visit their website. For slides or additional details from the webinar, send a text with the word “slides” to 647 799 2264. Always consult with a professional advisor to align your investment decisions with your financial goals.
Webinar 2 – Thrive in ’25: Pier 4 REIT
In this episode of ‘Thrive in 25,’ hosts Addy Saeed and Kaz Jaffer conduct an in-depth review of Pier 4 REIT by interviewing Darren Gazdag, VP of Sales at Pier 4. The discussion covers the fund’s strategy, investment approach, and performance metrics. Darren provides insights into Pier 4’s focus on value-add properties, the management team’s 40 years of experience, and the REIT’s significant growth, including plans to expand in secondary markets like Ontario and Atlantic Canada. They also highlight Pier 4’s commitment to internal property management and investor transparency. The session concludes with details on how investors can get involved and further information on the Pier 4 REIT.
In today’s rapidly shifting real estate landscape, investors are constantly on the lookout for opportunities that offer substantial returns while minimizing risks. A recent webinar, “Thrive in 25,” provided an in-depth review of Pier 4 REIT, a unique player in the real estate investment trust (REIT) arena that’s taking a distinctive approach to market entry and property management.
Introduction to Pier 4 REIT
Hosted by Addy Saeed, a dealing representative with over 18 years of experience, this session brought forward insights from Darren Gazdag, VP of Sales at Pier 4 REIT. Darren detailed the strategic acquisition and management methodologies that set Pier 4 apart. The emphasis of the discussion revolved around understanding the REIT’s investment strategies, growth trajectory, and the operational nuances that make it an attractive investment vehicle in secondary markets.
The Journey to Pier 4
Darren Gazdag’s journey through the financial services industry highlights the unique positioning of Pier 4 as a family-owned multifamily REIT. The REIT, launched in 2020, is built on a foundation of over 40 years in real estate, including experiences in ownership, property management, and capital improvements. Using this extensive background, the Ashby family transitioned from operating a general contracting business to acquiring their own real estate portfolio, eventually leading to the formation of Pier 4.
Navigating Secondary Markets
Pier 4 REIT’s strategy is heavily focused on targeting under-the-radar real estate opportunities primarily in secondary markets outside major metropolitan areas, such as Ontario and Atlantic Canada. By concentrating on low competition areas, Pier 4 identifies overlooked properties with substantial potential for improvement. This strategy not only boosts property values but also enhances the living experiences for residents.
Innovative Management and Growth Strategy
A significant part of Pier 4’s allure comes from its self-sufficient property management strategy. By internalizing property management, Pier 4 maintains better control over operations, thereby minimizing costs and boosting investor returns. This approach also supports their aggressive acquisition strategy, allowing for significant growth and a consistent distribution yield that surpasses industry standards.
Investor Returns and Strategic Acquisitions
An investment in Pier 4 is marked by its strong performance metrics, with returns since inception exceeding 40% for Class A investments. The REIT aims to maintain an 8% distribution yield with a long-term target of 12-15% returns. This consistent benefit for investors is bolstered by the REIT’s ability to acquire properties with significant gaps to market rent assessments, enabling value appreciation and enhanced income.
Evaluating the Future: Risks and Opportunities
Looking forward, Pier 4 is poised to continue its growth trajectory, especially as market conditions evolve with interest rate adjustments and shifting real estate dynamics. One consideration discussed was the potential impact of upcoming rent control legislation in Nova Scotia. However, Darren expressed confidence in Pier 4’s preparedness to adapt to any legislative changes, supported by their substantial gap to market rents.
Conclusion
For investors looking to broaden their portfolios with exposure to under-tapped, high-potential real estate opportunities, Pier 4 REIT offers a compelling proposition. With a focus on secondary markets, strategic property management, and consistent investor returns, Pier 4 stands out as a leader in the private REIT space.
For more information on Pier 4 REIT and access to their investor materials, potential investors can visit Westcliff’s online platforms or schedule a consultation with their representatives.
