Aquisition & Renovation
With our multifamily investments, we generally focus on properties that range between 30 and 350 units, were built in the 1960s to 1990s and range in price between $2.0 million and $40.0 million. We often focus in secondary and tertiary markets where we can achieve debt-coverage ratios in excess of 1.5 to mitigate risks in an economic slowdown.
Our annualized return on investment objectives are as follows:
Cash-on-cash returns of at least eight to 12 percent
Debt reduction that provides an effective return on invested capital of one to three percent
Capital appreciation of five to 15 percent for the term of the investment
Thus the combined compounded annual returns over the term of investment should exceed 15 percent
CVG specializes in urban infill development or redevelopment, with a focus on projects that incorporate government incentives, primarily Opportunity Zones.
Today, we focus on Unique to the market, PEG’s fund focuses on pre-identified, shovel-ready investments. The offering contrasts sharply with vehicles hoping to land attractive opportunity zone deals after raising capital from investors.
The Opportunity Zone program, established under the 2017 Tax Cuts and Jobs Act, provides special incentives for investors who substantially improve assets in more than 8,700 federally designated geographical areas across the United States.
Prior to the introduction of the Opportunity Zone program, CVG’s principals built a track record of distinctive and complex deals. CVG’s in-house expertise in deal sourcing and execution, as well as project and construction management, allows the company to provide this compelling offering.
CVG has two important sets of customers; our residents and our investors. We serve our residents by improving their communities and their neighborhoods. We serve our investors with superior visibility and transparency into their investments, combined with positive returns.
CVG provides timely, clear and transparent reporting on the performance of its investments. We also provide prompt quarterly distributions from the excess cash flow of the properties and we provide prompt and accurate year-end tax reporting.
We seek to provide the best value in class within the respective micro-markets for each of our properties. We focus on safety, comfort and value for our residents. We are adamant about timely responses to service and repair issues and we promote a sense of community within our properties. We continually improve each property, so that it remains attractive to our tenant base.
By improving and maintaining the quality and livability of our properties so that we’re at the top of our class and submarket, while keeping rents within market ranges, we expect to enjoy occupancy rates at the top of our markets. We will build quality rent rolls over time, with lower than average turnover and delinquency.
We seek to balance ongoing re-investment in our properties with providing quarterly cash flow to our investors. By keeping our assets in good condition, we help assure the sustainability of the cash flows and optimize the longer-term appreciation potential.
We take pride in every property we own and welcome opportunities to tour our properties with our current and future investors.