The general investment strategy is to locate under-managed, under-valued (and sometimes ugly) properties in growth areas of promising cities (“class C or class B building in a class B area”). This property will be acquired, impeccably managed, appropriately renovated and financed from the start or re-financed after approximately 9 to 15 months. The rents will have increased and therefore, the value of the building.
The building may be sold at a set exit point, approximately 35% to 80% above the purchase price, or at a pre-set point-in-time or as condominiums, or may be held long term for cash-flow purposes with liquidity events, depending on the specific project or pool. Prestigious Properties’ executives frequently invest their own money in conjunction with coinvestors’ money in addition to bank and/or seller financing. The Prestigious Properties Group, founded in 2000, provides average or sophisticated investors with one-stop-shopping and excellent ROI (with optional cash-flow). The target ROI for our passive co-investors is in the 100% range in 5 to 7 years, and it has historically been even higher.