Greg Cooper J.D.
December 5, 2021
Question: How does a private real estate investment group focused on the multifamily sector find the perfect off-market assets?
Answer: The investor retains Offerd to source the right properties.
In this blog series, we’ve been demystifying third party acquisitions. We understand that the idea of outsourcing the search for multifamily assets is still new to some industry professionals—every big change in fundamental business practices comes with questions, and requires adjustments in routine habits. That’s why we want to explain the process and highlight the many benefits, and one way to do that is to show the work in progress.
Meet Trident Multifamily. This Dallas-based company has a mission to offer viable alternatives to conventional investment vehicles—and that means acquiring multifamily complexes with ‘value-add opportunities that force appreciation and deliver strong returns’ to investors. There are specific parameters: The firm typically wants structurally sound, under-performing properties in growing markets. Trident’s portfolio features multifamily complexes with value-add opportunities that force appreciation and deliver strong returns for its investors. The projects are carefully selected on the basis of very specific and strategic criteria, and are designed to outperform traditional investment vehicles. Once the assets are acquired, Trident develops and implements strategies to increase value, optimize operations and increase cash flow and net operating income.
Trident became aware of Offerd through an online marketing campaign, and a partnership developed very quickly. The arrangement has already uncovered a gem in Oklahoma
The Bellevue at Sheridan in Tulsa, OK, is a 256-unit property with a 94%-plus occupancy rate. Despite the potential, the asset didn’t really fit into its previous owner’s portfolio. However, by being in that situation, it’s unlikely a traditional search process would have found this prospect.
Offerd found it, brought it to Trident, and the deal is done. Offerd advised the investor in taking out a supplemental loan, and Trident can now do what it does best: develop and implement strategies to optimize operations and increase cash flow and net operating income.
The acquisition offers a perfect representation of what’s possible when an innovative investor draws on the best of acquisitions as a service. With over 10,000 data points and deep business intelligence, Offerd tracks more than 90,000 off-market assets, while the in-house acquisitions team sources the most profitable assets for its operating partners. The integration of technology, expert sourcing team and top operators provides a true competitive advantage to every partner.
It’s fair to say that much of what is happening in deals like this would not happen through a traditional, on-market strategy. Just as forward-facing investors like Trident are willing to go outside typical channels and outsource the search, Offerd’s extensive database and in-house skillsets, along with a focus on finding the best assets wherever they exist, represent a powerful collaboration. The entire arrangement is uniquely suited to these times, when the multifamily sector is experiencing a major surge, there are opportunities emerging in regions all over the country, and only the right combination of experience, networks, data and technology can help identify the right deals at the right time.
In the weeks and months ahead, we’ll have more details on more deals emerging from more partnerships like the one with Trident. Stay tuned—or give us a call.