National in Scope • Regional in Expertise
acquisitions
Orion Residential has developed a holistic approach to its acquisition activities in an effort to create a sustainable competitive advantage for acquisitions. Orion believes that this approach to acquisitions will allow for prudent investment decisions enabling us to acquire apartment communities that appeal to our target demographic and over time create long term value for our investors.
Our acquisition strategy centers on the following investment thesis:
- Customer Identification- Who is our customer, what do they want and how can we best provide it.
- Market Selection- What markets do we look to find our Customer and can these markets provide the highest probability of above market rates of return on a risk adjusted basis.
- Product Identification- What is the optimal product in our selected markets to provide the apartment homes best suited to our Customers needs and wants.
- Value Creation- What enhancements can we make to the product that will appeal most to our Customers without having to take unnecessary risk for our investors.
Orion has developed a proprietary Market Selection model allowing us to determine which macro markets have the highest profitability of above market returns on a risk adjust basis. Based on these indicators, Orion has identified the following markets for 2010/2011.
(as indicated on the above map)
Investment Parameters
- Deal Size - $15 million - $250 million
- Conventional Apartment
- communities 250 units or greater built between 1995-2005. Ability to upgrade common area amenities and individual apartment units. Typically, infill urban locations or mature suburban location.
- Opportunistic
- Broken condominium projects either held as "For Sale" inventory or convert back to rental units (must control HOA)
- Notes either current or in default including Notes in bankruptcy
- Foreclosure Properties
Scroll on map for target markets