Summerfield Asset Advisory’s core philosophy is to buy right. You never get a second chance to adjust what you have paid for an asset but any property is worth purchasing if you can get it for the right price. We utilize our broad based experience and intimate market knowledge to accurately assess and identify true value add opportunities through renovation, operational improvement, or below market pricing. We are able to dig deeply into the core of an asset and its surrounding market place to accurately project the potential for investment growth due to the depth of our various internal divisions.
We buy in all locations if pricing clearly allows us to create reasonable economic returns. When considering long term acquisitions we tend to invest in locations with true competitive advantage. This is defined as those locations with strong natural and political supply constraints to limit new competition and strong market fundamentals supported by reliable demographic research. These high growth/high barrier markets have traditionally outperformed other real estate markets. We understand real estate’s highly cyclical nature. We believe that market timing is a fundamental key to buying right and generating required returns. Some of the criteria we consider when assessing an investment are:
- Is the asset and/or localized market currently out of favor but has the potential to rebound in a reasonable time frame?
- Is the asset underperforming due to mismanagement?
- Is the asset and location suitable for value growth via renovation/upgrade?
- Do socioeconomic factors suggest that a location is prime for near term gentrification where the expected median income growth will be significant enough to improve overall social standard?
- What is the current job base, expectations as to stability, and anticipated future climate for growth or contraction?
- Is pricing opportunistic?
Some of the tools and discipline we use to stay on top of markets are:
- We utilize internal market research from our research department to exploit informational advantages in order to capitalize on inefficiencies in markets.
- We continue to mine and develop our proprietary database of properties that we believe have the best opportunity for strong risk-adjusted returns.
- We establish strong local operating knowledge and expertise via our management operating platform.
- We believe in maximizing our reach through not only internal Brokers but new and existing relationships with brokerage firms and other key information sources.
- We monitor demographic makeup of a given area for both short and long term trends by monitoring current and anticipated job activity, examining population trend, household income, education level, and rental growth history.
- We stay within our expertise, larger multifamily assets.
Due to our disciplined investment strategy and evaluation process, we go above and beyond the industry standard to provide the highest probability of a satisfactory rate of return on investment.