Acquisitions
PIE Properties specializes in acquiring value-add assets through a variety of transaction types. We categorize our acquisitions into two strategies, short-term and long-term. We employ unique techniques for each investment opportunity depending on the strategy we implement. For all potential acquisitions, PIE Properties completes a thorough evaluation process, which includes a financial analysis report, market research, construction budget, business plan and exit-strategy. Leveraging local relationships we are able to source the best deals, renovate and market properties efficiently, and expedite the closing process. The debt and equity financing strategies that are implemented depend on a variety of factors, such as purchase price, hold period and transaction type. If a property does not meet our investment criteria, we simply do not pursue the acquisition.
Investment Criteria
Property Type
- Multifamily
- Mixed-Use
- Student Housing
- Land
Location
- New York
- New Jersey
- Connecticut
- Florida
Transaction Type
- Off Market
- Short Sales
- Foreclosures
- Auctions
- REO
- Wholesales
- Non-Performing Notes
Investment Size
- $300,000 - $5,000,000
Holding Period
- Long Term: 2-10 Years
- Short Term: 0-2 Years
Short-Term Strategy
Our short-term investment strategy encompasses flips, condo conversions and wholesales. For our short-term strategy, we always exit the investment within 2 years. On average, the life of a short-term investment is anywhere from 6-8 months. When implementing the short-term strategy we focus on value-add and development opportunities. This includes multi-family, land and mixed-use properties.
We acquire these investment opportunities with cash, allowing us to expedite the closing process for sellers. PIE Properties is able to efficiently purchase, renovate and dispose of assets by leveraging our extensive network within the industry, ranging from contractors and architects to attorneys and agents. The key performance indicator (KPI) that we prioritize during our underwriting process is cash on cash ROI. The speed in which we are able to complete these short-term investments is an essential reason why we produce such favorable returns for both PIE Properties and our investors.
Long-Term Strategy
Our long-term investment strategy is strictly focused on the acquisition and management of multi-family assets. We typically hold properties for 3+ years. We target value-add and distressed multi-family properties that can or currently do provide strong cash flow. Assets that are in some state of distress, maybe due to mismanagement or financial complications, and/or require capital improvements are ideal candidates. We acquire these assets utilizing a variety of financing options which range from your typical commercial loans to seller financing, cash, bridge loans and many others. The two key performance indicators (KPI's) that we prioritize during our underwriting process are cap rate and cash on cash ROI.
PIE Properties taps our trusted third party property manager relationships to systematically manage our long-term hold assets. We believe that it is crucial to have localized property management partners. This allows for a deeper understanding of the local market, including real estate fundamentals, economic/demographic trends, local laws, etc.