Our core focus is to invest in assets that we have confidence will drive meaningful appreciation in asset values, while producing attractive cash yields in the near term
Discount to Replacement Cost, High Barrier to Entry Markets
Attractive Agency Financing, Efficient Capital Structures
Targeted Capital Expenditures, Aggressive Leasing
Disposition, Refinance, or Recapitalization
Proven Sponsor Partner
Matador seeks to identify sponsors that have long track records of successful multifamily real estate investments. Our partners typically have properties under contract and require capital to close on the properties
Attractive Purchase Price
Matador intends to invest in properties at a basis that is at or below replacement cost. This means the existing supply can be quantified - newly built supply would inevitably have higher rental rates due to higher costs
Property Competitive Advantages
Nearly all compelling assets have distinct competitive advantages that MCM looks for in each deal, including: central location with access to transportation and near employment hubs, favorable tenant demographic and unit mix, best-in-class amenities, solid infrastructure and identifiable sub-market tailwinds
Identifiable Value Drivers
Many of the assets available have been poorly managed and under capitalized or have diminished occupancy; Matador looks to stabilize and improve these assets. Upside is achieved through value-add capital improvements, institutionalized management programs, and improved property efficiency through expense control. These value levers are identifiable and easier to underwrite – no true ‘development’ or extensive value-add risk
Robust Exit Alternatives
Single asset or portfolio dispositions; the market demand for stabilized multi family assets is robust and exit cap rates continue to compress. 1031 exchanges allows for tax deferred re-investment, expanding investor’s leverage
What We Look For
Our Fundamental Principle is to Focus on Risk before Return
All transactions are subject to a detailed due diligence process whereby MCM corroborates the sponsor’s due diligence, as well as analyzing the asset on its own merits. We strive to be cautious, skeptical investors underwriting to conservative assumptions that usually represent a downside scenario according to the sponsor. We look for deals that offer comfortable debt-service-coverage-ratios even under these unfavorable assumptions of muted price increases and occupancy.
A key commercial mechanism to control risk is through careful asset selection and price discipline. We focus on assets that can be acquired at discounts to replacement cost, which protects against new supply absorbing our property’s demand. To achieve this pricing, we often rely on our deep relationships with sponsors and market participants to secure off-market deals – we also look to exploit market misalignments and quickly acquire poorly managed properties in the hands of forced sellers.
Conservative Business Plans
Each of the sponsors with whom we invest have detailed business plans to maximize performance, where value is created by the continuous cycle of tenant recruitment, building renovation and tenant repositioning. These value drivers are identifiable and are not exposed to substantial development risk.
Hands On Asset Management
We invest with sponsors who engage industry leading property managers and general contractors; the asset managers will stay close to the process and are on site at our assets on a regular basis. We focus on experienced sponsors who maintain quality in every facet of operations, employing lean costs controls where feasible.
We believe in a constant, flowing line of communication between the sponsor, Matador Capital and our Investors. Matador works with the sponsor to best position the asset to achieve a stable and strong return profile – and we provide investors with timely and transparent financial reporting.