A long-term holding strategy is productive for multifamily operators. One comprehensive 2018 study using the National Council of Real Estate Investment Fiduciaries data shows multifamily investments outperform all other property classes, including office, retail, and industrial. A safe haven? As real estate investments go, multifamily comes as close as any.
The findings revealed the strongest comparative results were in seven- to 10-year holding spans, with the highest overall apartment returns coming after 15 years. More than ever, maintaining high resident satisfaction is a constant priority for multifamily owners and operators.
Few have honed that differentiator to a finer edge than CA Ventures, a Chicago-based real estate investment management group. The company owns or operates more than 185 assets worldwide valued at over $13 billion.
Ownership Mentality
“We plan, design, construct, and manage properties for longevity,” says John Kitson, CA Ventures senior vice president of development and a licensed architect. “We never think of ‘let’s go with this because it’s the lowest cost.’ An ownership mentality is infused in every step of the operation.”
“High-end finishes and fixtures are standard in our apartments. Details matter, and residents notice the difference,” explains Kitson. “The overall apartment design presents a clean, modern look. A prospective resident walks in and often turns to the kitchen cabinets and countertops. Then they’ll try the faucet. How does it look? Does it feel sturdy? Does the faucet enhance the overall effect?”
Affordable Choice
To minimize style and budget risk, Kitson has specified Peerless kitchen and bathroom faucets, a go-to brand for growing numbers of multifamily developers and owners. The Peerless line includes the Xander collection. The sleek single-handle, pull-down kitchen model in a chrome finish and ADA-compliant matches well with a unit’s other hardware, including the shower door hinges, entry door handle, and cabinet handles.
“The kitchen faucet, as much as anything, represents the quality of the unit. We pay a lot of attention to it. Just a faucet? Not with us,” Kitson says. That value-added dimension includes premium features like a long-wearing ceramic valve and a 10-year multifamily warranty.
He also understands how the power of brand influences residents’ decision-making too. But it has to be scaled to fit the property and market demographic. What works best in a penthouse doesn’t necessarily mean it’s right for a studio or a three-bedroom apartment. Peerless works great for the target market.
Resident Feedback
Leasing success affirms that selection, as does one other metric: resident feedback. “We’ve had no negative feedback. No news is good news,” Kitson says. “We’re happy with Peerless.”
If a long-term holding strategy is part of your multifamily investment program, partner with vendors that support your goals through exceptional value, style, and warranty peace of mind.
Discover why the Xander Collection should be considered for your next project.
