ACI has engaged Canadian investors for investing in the United States commercial real estate market. This relationship continues to grow as more investors take notice of the potential of entering into this market.
ACI is a Canadian company with USA subsidiaries. ACI has over a decades worth of experience working within the US commercial real estate market, and our expertize makes allows us to partner with Canadian investors to seek out ideal investment opportunities.
ACI has partnered with ROCK Advisors, a Canadian commercial real estate firm in order to bring forth active Canadian investors for US apartment investments. Click here to see the US opportunities that ROCK are currently promoting.
What are the benefits to investing in US construction deals for multi-unit residential rental properties?
The demand for rental properties is currently very high, making such investments opportunistic. The economy continues to recover from the last recession, but the housing market is still tough, making the rental properties the ideal choice for younger generations. More and more people are opting to rent instead of buy in the current market, driving the market for luxury and market-rate rental property developments.
Furthermore, the other growing demographic is the aging population. There is a growing demand for senior living products as the population ages and requires more care. Today, the demand for senior living in the USA exceed supply. The opportunity is to invest in this product type early before more investors recognize and enter the market, inevitably increasing competition and reducing the diversity of opportunities.
Other benefits in addition to the strong marketplace for our investors include:
- Strong developer profits driven by low cap rates.
- Earning a preferred rate of return on investment during construction.
- Option to sell once the property is stabilized, or hold for a longer period.
- Diversity of individual markets allowing for options in terms of chosen location and product type.
- The US dollar remains strong.
Strong Partnerships
ACI uses it’s resources and expertize to qualify incoming clientele and deal flow before it reaches any investor for review. Our sponsor’s and partners have the experience and track record of performance to ensure a quality and straightforward development process.
Investment Returns
Our investors will earn a preferred rate of return (usually 8%) during construction.
Generally, developments are scheduled: one year to build, one year to stabilize occupancy, then sell within 3 or 5 years (unless a decision is made to hold the property).
IRRs of 25% – 30% or greater.
Equity multiples 2.0x – 3.0x or greater.
Timing of investment abut 3 – 5 years.
Feasibility and Risk
All projects will have a qualified third part market feasibility study as well as an appraisal prepared and available before ACI brings a project to an investor. These studies go into detail as to the feasibility of a project in a given market, including suggested unit numbers, unit mixes, and rent levels.
In general, apartment rents and occupancy are steadily rising in most markets of the US as demand increases.
Risk is minimized as deals ACI brings forward are with developers with large portfolios and strong biographies with many years experience in the business, often with their own construction and management company.
Our partners are often open to discussing who will construct the development, and who will ultimately operate it, should an incoming investor wish make a suggestion.