Investment Approach
UGP offers investors a differentiated, dual-processed deal sourcing strategy leveraging its well-established broker relationships and its own direct-to-seller marketing to identify, cultivate, and manage high-potential properties
Strategy
Advantages
Identification
- Decade long broker relationships drive lead generation for “off-market” assets
- Direct outreach to owners provides for additional screening opportunities
- Professional relationships and contacts provide an advantage over retail investors.
- Direct-to-seller marketing generates opportunities traditionally missed by institutional investors.
Stage 1
Value Creation
- Experience navigating rent control allows for value-add opportunities at significant discounts
- High standard of build quality & strategic design implementations, such as new dwelling units and amenity additions provide significant upside
- A committed project management team ensures a cost-efficient and timely completion of rehabilitation projects, assuring a successful repositioning of the property
Stage 2
Management
- Aggressive, hands-on management drives the business plan forward following acquisition
- Post-renovation refinancing returns a considerable share of principal capital leading to accelerated dividend returns and a “turnkey” approach for investors.
- Proven and experienced property managers guarantee efficient leasing, asset upkeep, and high occupancy rates
- A dedicated investment team monitors portfolio assets and diligently audits new opportunities
Stage 3
Underwriting Tenants
Median Income Above
National Average
National Average
Unemployment Below
National Average
National Average
High Demand, Low
Supply of Housing
Supply of Housing
Migration to City /
Location
Location
Investment Objectives
UGP diligently works to maximize asset value while considering both the short-term and long-term
investment goals of its LPs
- Preserve capital and provide above market returns to investors through utilizing deep industry experience and development expertise
- Generate significant long term value through efficient execution and management
- Capitalize on high quality assets that meet investments criteria and are not yet recognized by broader market
Investment Strategies
Value Add Repositioning
- Decade long broker relationships drive lead generation for “off-market” assets
- Direct outreach to owners provides for additional screening opportunities
- Direct outreach to owners provides for additional screening opportunities
Identification
- Experience navigating rent control allows for value-add opportunities at significant discounts
- High standard of build quality & strategic design implementations, such as new dwelling units and amenity additions provide substantial upside
- High standard of build quality & strategic design implementations, such as new dwelling units and amenity additions provide substantial upside
Value Creation
- Aggressive, hands-on management drives the business plan forward following acquisition
- Post-renovation refinancing returns a considerable share of principal capital leading to accelerated dividend returns and a “turnkey” approach for investors
- Post-renovation refinancing returns a considerable share of principal capital leading to accelerated dividend returns and a “turnkey” approach for investors
Management
Property Profile
- Non-institutional, value-add, multi-family properties ranging from 10 -15 units
- Target assets allow for significant rent increase and property appreciation postrenovation
- $2 – 6M acquisition cost permitting for a quick close and budgeting for renovations
Key Considerations
- Markets with recent institutional multi-family investment and development
- Shifting demographics generating demand for new product in urban and suburban markets
- Targets demonstrate ability to produce >10% cash-on-cash return
Locations
- Existing urban cores and centers along with emerging urban neighborhoods
- Densely populated suburban markets with convenient transportation
- High barrier to entry markets with aging housing stock ripe for renovation
Select Target Submarkets
UGP has extensive experience working in core and emerging markets throughout Greater Los Angeles
Population Map of Select Submarkets
Market Outlook
- The largest income growing segment in Los Angeles are jobs earning $200k+ per year. This will lead to increased affordability despite home and rental prices increasing
- While core Los Angeles continues to record the largest influx of new apartments, deliveries are more evenly distributed than in previous years, creating new emerging communities with growing demand and popularity
- These emerging urban neighborhoods present unique investment opportunities fueled by demand-side factors and institutional backing
Represented Neighborhoods
- Eagle Rock
- Glassell Park
- Highland Park
- Atwater Village
- Los Feliz
- Silver Lake
- Echo Park
- Mount Washington