IDEAL is laser-focused on a singular goal: optimizing value through focused attention on smart financing, superior operations and stronger physical maintenance. For the residents, investors, and communities that we serve, this strategy enables us to achieve the best living experience, asset value and financial return possible; we benefit our clients and partners by serving these congruent goals with consistency and integrity.
We have a narrow concentration in multifamily housing, where our depth of success has built a layered strategy that is reliable, replicable and creates recurring income. With multifamily operational history dating back to the late 1980’s, our team possesses significant proprietary knowledge to give us an edge in acquisitions, management, rehabilitation and repositioning strategies. We are highly skilled at anticipating, identifying and solving problems, creating stability and security for our investors and partners.
At IDEAL, we specifically target California markets with strong, long-term fundamentals, catering to populations who are defined as being “renters by necessity,” where a large portion of residents are unable to participate in home ownership due to high barriers to entry for down payment and mortgage carry. We then select operational locations that have strong employment bases and compressed rental demand, and then seek out assets trading well below replacement cost. Our extensive knowledge of management operations, construction and physical maintenance enable our team to craft a targeted and reliable customized strategy to increase appreciation through rent growth driven by increased operational efficiency and strategic value additions to unit interiors and common area exteriors, creating a mutual benefit for our residents, our company and our investors.
Our Values and Partners
IDEAL’s values are centered on integrity, durability, and duration of close partnerships. Every client, every lender and every investor are held as long-term relationships that we approach with trust, consistency and personal attention. This is the strongly rooted foundation of our stellar industry reputation among debt and equity partners including Aegon USA Realty Advisors, Transamerica, Hanover Financial, CREA, US Bank, Wells Fargo, WinnResidential, Heitman, R4 Capital, Freddie Mac, Fannie Mae, Heitman, CBRE, and JLL. In every deal that we approach, the principals of IDEAL invest significant amounts of their personal capital so our success is directly aligned with our investor’s success.
IDEAL initiated business in this specific space because multifamily real estate backed by operational expertise provides an investment with superior risk-adjusted returns. An educated investment in multifamily assets produces recurring income, provides depreciation tax benefits, increases equity over time through mortgage paydown, appreciates through value-add repositioning, and multiplies equity through strategic leveraging. Our directors and principles provide that proprietary knowledge, backed by decades of stellar operational success.
Through this service, we provide investors with unique access to these sources of value;
Income, Depreciation, Equity, Appreciation, and Leverage, which are so core to our business plan that they became the identity of our company with the acronym IDEAL.
Our Acquisition Criteria:
Following is the general minimum acquisition criteria for IDEAL:
- Market-rate multifamily
- 100+ units
- Purchase price: $5M-$100M (ranging from one property to portfolios)
- Below replacement cost
- Built 1960+
- Value-add potential
- Rent growth opportunity due to under market rents, mis-management, and/or deferred maintenance
- Rehabilitation and repositioning potential
- Secondary and tertiary markets
- Limited rental supply, low vacancy, slow/no apartment growth horizon
- Stable, diverse, growing employment base
- CAP rate 5%+ on current operations
- Rents below market
At IDEAL, we offer a range of fund options for our investors. We work with both individual investors and large institutions that seek to acquire and diversify into California multifamily real estate. We also offer custom tailored funds for investors who seek one-on-one solutions for their financial objectives, including personalized 1031 Exchange solutions or longer-term holds on behalf of high net worth individuals or family offices.
We position our projects to achieve:
- A lower risk profile
- Comparable team expertise
- Passive income with limited liability
- 7% preferred returns, 6-8% cash on cash, 13-15% IRR
- Securing long term debt with low interest rate
- Existing trusting relationships and accountability
IDEAL and its affiliated companies AHDC and REDS have been the leading community supporters of Fresno’s unique Family Self Sufficiency (FSS) program. The FSS Corps, Inc. is a 501(c)3 non-profit organization that provides funding support for the purposes of financial literacy and home ownership education, scholarships, emergency loan assistance, and homeowner down payment assistance grants to low-income families throughout Fresno County, the home of our corporate headquarters and our area of highest concentration among our California affordable housing activities. The FSS Corps supports, encourages and helps to develop skills and education base among AHDC’s core clientele, the working low-income families of central California.
Through our years of support, we have seen FSS change the life paths of hundreds of low-income families, providing the tools necessary for them to break the often multi-generational cycle of public assistance. FSS supports their client families to pursue higher education and ambitious career goals, accomplish economic self-sufficiency and achieve the “American Dream” of responsible home ownership.
Our Affiliated Companies:
IDEAL has worked with some of the best in the industry including: Winn Residential, AHDC (Affordable Housing Development Corporation), REDS (Real Estate Development Services), and Ashwood Construction.
Our Property Management Partner:
WinnResidential has grown by earning a national reputation for excellence over four decades, now ranking as the 5th largest multifamily manager in the United States, as well as the largest manager and privatized military housing. Winn currently manages more than 100,000 units in more than 570 properties in 22 states and the District of Columbia. Their portfolio features mid to large sized communities and every type of multi-family housing, from market-rate to mixed income, from urban and suburban garden-style and high-rise apartment buildings to office, hotels, and retail spaces. They are trusted to manage properties owned by more than 70 entities including private developers, entrepreneurs, financial institutions, nonprofits and government agencies.
A representative list of management clients includes Lend Lease, DuPont, SunTrust Bank, Fidelity Investments, the Canyon-Johnson Fund, Harvard University, AEW Capital, Common Ground Community, NHP Foundation, the Diocese of Bridgeport, Homes for America, the U.S. Army, Navy, Air Force, Marines and Coast Guard, and dozens of public housing authorities from coast to coast.
WinnResidential’s extensive operations capacity addresses the full scope of onsite property management, including leasing, maintenance, accounting, financial reporting and asset-management evaluation. Its experience, problem-solving focus and broad operations underscores the expertise and scale to efficiently improve the quality of life and the value of individual properties.