Multi Family Residential Investment | Arizona Apartment Investments
DISCIPLINES | BROKERAGE | INVESTMENT | ASSET MANAGEMENT
Vestis Group | Vestis Capital LLC, dba MODE Apartments + Homes, is a real estate firm focused on Multi Family Residential Investment. We invest our clients’ capital together with our own to take advantage of opportunities with attractive risk-return attributes and an expectation of above-market returns. These goals are achieved through stringent underwriting practices and proactive property and asset management.
Through our extensive knowledge of the Phoenix multi-family residential real estate market, we can identify early trends, which provide insight into our pursuit of investment opportunities. Vestis Group’s principals have a thorough knowledge of the housing industry.
We have developed, built, rehabilitated, constructed, improved, managed and sold thousands of apartments, condos, homes, and home sites. Vestis Group principals and affiliates also have extensive experience constructing, improving, renovating, owning and operating residential and commercial properties. Our expertise in management, finance and construction is the backbone supporting every investment opportunity we identify.
DIRECT PROPERTY INVESTMENTS
Multi Family Residential Investment and residential investment real estate is the focus of Vestis Capital LLC, one of Vestis Group’s main business lines. We invest in a variety of properties including apartments, bulk condos, single-family homes and multi-family residential land in our core geographic market.
Through our continuous evaluation of the national and local economic environment, as well as property-level performance, we focus on opportunities positioned for strong operating results. We also consider distressed situations with deep-value pricing and the potential to improve operating performance. Our purchases typically have a one- to two-year time horizon. While we will look at broadly-marketed conditions, we focus on buying properties with a more limited marketing process or with a specialized value-added component not easily understood by larger, non-local, investment groups with a national approach.
We spend a substantial amount of time and resources monitoring opportunities with strict attention to the nuances and details of this specific real estate market. Learn More>>
Deal flow is a combination of local relationships and in-house acquisitions, and our ability to capitalize on expertise across multiple company business lines to evaluate the opportunities and risks associated with an investment.
We Buy-Fix-Hold and Buy-Fix-Sell distressed, older vintage, multi-family, single-family (homes, townhomes, condos) and commercial properties, which require minor to major rehab, in established or trendy, improving/transitional neighborhoods and increase the value through high-end renovation, target marketing and hands-on property management. By using our extensive local area knowledge, adhering to our target market and renovating with contemporary design, we are able to command above market rents and dispose our buildings at premium pricing, ensuring maximum return on investment. Learn More>>
Vestis Group communities are financially successful because they are the outcome of thoughtful market and product analysis, and offer quality construction and sustainable design that enhances surrounding neighborhoods.
INVEST WITH VESTIS GROUP
When Vestis Capital purchases a property, there are two ways an investor may participate: Equity Investing and Debt Investing.
- EQUITY INVESTING – An equity investment offers a variable annual return based on a share of monthly cash flow and the final disposition value of the property. At close of escrow, the investor will receive back his/her original investment first, then the remaining proceeds are split as specified in a pre-determined operating agreement.
- DEBT INVESTING – A debt investment offers an investor a fixed annual interest rate paid monthly. The debt investor receives a relatively high interest rate (typically 8-12%) on his/her money, but has no share of profits that may be realized from a sale or positive cash flow. The debt investment is secured by a note and deed of trust.
- Returns are computed per annum
- A preferred, fixed, return is disbursed monthly
- Rates are fixed for the period of the term of the investment
- Real property is assigned as collateral
- Notes are secured by a first position deed of trust
- Project financial reports are issued monthly
Risk | Return
When we evaluate a potential property for acquisition, our minimum acceptable annual rate of return is 25%. If we do not project a minimum 25% annual return, we do not move forward with the acquisition. We believe that our pro forma numbers are conservative, however to earn returns of 8% to 80% per year, there is inevitably more risk that simply leaving your funds in a savings account at your local bank. Some properties are bought at a trustee sale auction and a thorough physical inspection is not always possible. Mechanical, electrical, plumbing, sewer, structural problems and zoning challenges are all possibilities. Our multifamily investments (for example) allow for a 10% vacancy rate. We utilize professional property management companies for the day-to-day leasing and maintenance activities, but if vacancies were to dramatically increase, the financial success of the project could be threatened. As an equity or debt investor your worst case scenario exit strategy is that you end up with the property.
Vestis Capital LLC is not a real estate investment trust (REIT). This document is not a private offering memorandum or a solicitation to the general public. It is a brochure highlighting current and completed real estate investment projects, our experience and capabilities. Specific real estate opportunities and investment scenarios are only offered to qualified investors. Past successes are no guarantee of future results. Some members of Vestis Capital LLC are active real estate brokers, associate brokers or salespersons in the State of Arizona.