Investment Strategy

Investment Objectives

The success of Lexerd Capital Management is attributed to adherence to the following investment objectives:

  • Preserve, protect and return invested capital
  • Pay attractive and stable cash distributions to investors
  • Realize capital appreciation distributions to investors

Key Drivers

Our partners at Lexerd Capital Management have been involved in all phases in the investment process by implementing a value-enhancing plan which ensures prudent oversight. Other key drivers for fund returns include:

  • We place emphasis on our proprietary investment acquisition process
  • We monitor demographic, employment and rental trends
  • We proactively monitor and model vacancy rates in areas where we invest

Criteria

When acquiring assets, Lexerd Capital Management collaborates with local partners who have deep experience in their target markets and screens a large number of opportunities based on several criteria that, among others, include:

  • Mid-sized assets
  • Value creation opportunities
  • Location outside mature metropolitan areas
  • Area with good prospects of employment

Investment Process

In a highly fragmented multifamily real estate market, Lexerd moves quickly to acquire suitable assets with attractive cash flows by securing properties at below market prices via off-market transactions. Following successful acquisition of properties at attractive valuations, Lexerd drives operational efficiency to maximize net operating income and improve the long-term value of each real estate holding. Locking-in value at below market rates along with improved net operating income ensures attractive yields typically captured with an annual distribution of 8% and a multiple return of capital investment. Through a joint venture with First Communities, one of the largest US apartment managers, Lexerd maximizes returns to LPs while offers an annual stable distribution to investors as well. Joint oversight allows for tracking performance, optimizing value added investments and driving efficiency in day-to-day operations.