The Intersection of Profit and Community Development in Multi-Family Investing

February 6, 2024

In the domain of multi-family, an evolving dynamic is at play in investment firms’ strategic approach.

Progressive investment firms are redefining success by showing that the value of an investment can be measured not just in financial returns, but also in social impact and community development. This dual-focus approach carves out a niche in the B and C markets of multi-family properties.

The traditional model of real estate investing has primarily concentrated on the bottom line, overlooking the broader implications of investment decisions on communities. Progressive firms, however, are challenging this narrative by prioritizing both returns for investors and better living environments for residents. It’s a strategy that acknowledges the symbiotic relationship between thriving communities and successful investments.

Each property acquisition becomes a cornerstone for neighborhood revitalization, contributing to the fabric of the community. This isn’t about short-term fixes for long-term problems; it’s about thoughtful improvements that foster lasting change. From enhancing safety and aesthetic appeal to providing essential amenities, these changes aim to uplift not only the property itself but also the surrounding area and greater community.

Percipio Partners takes this approach to acquisitions, one such example is The Warwick, located in Norfolk, NE. The Warwick apartment community is comprised of 72 units offering a variety of 1 and 2-bedroom apartments as well as 3-bedroom townhomes. When first acquired, the community lacked many amenities and general maintenance work that residents should expect from their community’s property management. Now, the community is much safer with the addition of 24-hour maintenance, adequate interior and exterior lighting, parking lot markings, updated appliances, and freshly renovated communal spaces. In addition to safer living conditions, residents now also have access to free laundry, a bark park for their pets, and a picnic area.

Given Norfolk’s vibrant growth and the increasing demand for quality housing solutions across the nation, the acquisition of The Warwick community is a testament to Percipio Partner’s investment philosophy, prioritizing contributions to local economies by improving the properties and livelihood of residents.

This approach calls to investors who are looking for more than just financial gains. They’re drawn to the idea of leaving a legacy of positive impact through their investments. They see the value in supporting companies that are committed to ethical investing, which, in turn, drives a cycle of positive reinforcement between investor satisfaction and community development.

As this trend gains momentum, it’s clear that the future of real estate investing does not force a choice between profit and social good. Instead, it presents an integrated model where the two go hand in hand.

 

About the Author

Jim Rich
CEO, Principal
Percipio Partners

Jim has 20 years of experience in the fields of financial valuation and strategic management consulting, with a focus on market and credit risk management, and strategic asset management. Add to that 10 years of experience managing syndicated fund investments across asset classes and you’ll find there’s not much that can surprise Jim.

 

[email protected]
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