Multifamily Value

Rincon Partners' Multifamily Value Strategy is based on identifying multifamily properties that have the potential to deliver double-digit returns. Rincon may achieve such returns by renovating and repositioning the property, improving tenant mix, controlling costs and/or arbitraging the acquisition price to actual market value. Rincon focuses on the following investment acquisition criteria in its Multifamily Value Strategy:

  • Strong demographics which support the "target tenant" and expected unit rents
  • Strong location within the market, a good neighborhood, near retail, entertainment, restaurants and other amenities
  • No significant renovation within the last 10 years
  • Purchase price that is below replacement cost
  • In place rents which are below surrounding market rents (even if in-place rents are at market for the condition of the property)
  • Opportunity for organic NOI improvement by reducing vacancy and turnover, reducing operating costs and shifting costs to tenants such as electricity and other utilities
  • Opportunity for enhancements to property amenities to improve tenant experience and increase rental rates

DST 1031 Exchange

Rincon Partners provides investment opportunities in Class A multifamily properties, through a strategic joint venture with Capital Square 1031, LLC. The primary objectives of this strategy are to provide steady income, preserve capital and defer capital gains taxes. The properties are acquired within a Delaware Statutory Trust ("DST") which enables investors to own a direct fractional interest in the property that will qualify for tax free exchange under IRS Code Section 1031. Rincon focuses on the following investment acquisition criteria for the DST 1031 Exchange Strategy:

  • Located in the western and southwestern United States, focusing on the primary MSAs within each region
  • Strong locations near employment hubs, retail, entertainment, restaurants, and other amenities
  • Opportunity for NOI growth through increasing rental rates and/or reducing operating costs
  • Newer Class A properties with minimal repairs and maintenance expected in the near-term

Self-Storage

Rincon Partners' Self-Storage Strategy includes the acquisition and development of Class A, climate controlled self-storage facilities in high growth markets. Rincon targets existing self-storage properties or self-storage development sites that have the potential to deliver above-market returns. Rincon evaluates such properties over multiple time horizons from development projects with a target sale at certificate of occupancy or stabilization to long-term holds which provide ongoing cash flows and capital appreciation. Rincon focuses on the following investment acquisition criteria in its Self-Storage Strategy:

  • Strong demographics which support the "target tenant" and expected unit rents
  • Strong location within the market, a good neighborhood with high barriers to entry or high growth expectations
  • Markets with institutional investors and national third-party managers
  • On existing properties:
  • In place rents which are below surrounding market rents (even if in-place rents are at market for the condition of the property)
  • Opportunity for organic NOI improvement by reducing vacancy and turnover and reducing operating costs
  • Opportunity for enhancements to property amenities to improve tenant experience and increase rental rates