Strategy for Passive Real Estate Investing

At Wilkinson, we strategically focus on Value-Add and Core Plus multifamily real estate investments where we are able to control revenue and expenses in order to improve Net Operating Income. Multifamily is our focus as it has historically outperformed other commercial real estate asset classes, and is a great hedge against inflation. In the multifamily asset class, we own hundreds of units across multiple properties and multiple markets producing a diversified cash flow and diversified risk.

Growth-Focused
Multifamily Investing

We seek to identify real estate investment opportunities in rapidly growing markets with diverse, local economic dynamics that provide growth potential and significant barriers to entry. Wilkinson has a proven track record of increasing the value of each of our properties through our value-add and core-plus strategies, with an average increase over purchase price on multifamily properties of 70.5%.

OUR STRATEGY

SUCCESSFUL IMPLEMENTATION OF BUSINESS PLAN

For each new acquisition, we evaluate approximately 80–100 properties and select the ones with the greatest potential for added value.

Our firm targets middle-market workforce housing (class B ad C assets). These properties are historically more resilient to the effects of localized economic fluctuations and have greater stability in value overall.

We target apartment communities where the most value and improvement can be created. We reposition assets in the marketplace by rebranding and stepping up the look and feel of the property.

By setting realistic and attainable goals, each community we have acquired, improved, and sold has met or exceeded our expectations.

VALUE-ADD STRATEGY

We plan improvements designed to increase the value of each asset we manage. Based on recommendations from our asset management team and property managers, we may pursue any combination of the following strategies to increase value:

Rebrand and reposition properties in the marketplace.
Increase operational efficiencies.
Increase occupancy and rental rates.
Provide programs and services to help develop greater social interaction among apartment residents.
Improve curb appeal, add or update outdoor and indoor amenities, update building exteriors, make unit renovations.
Perform utility conservation measures.
Upgrade lighting for energy efficiency and to improve safety.

Through this process, operational and economic performance is improved, resulting in increased net operating income (NOI) and higher valuations.

Over the years this formula has allowed us to meet and often exceed our performance expectations.

Core Plus Strategy

The core plus strategy is a popular investment approach in the multifamily commercial real estate sector. It involves acquiring properties that are already stabilized and generating steady cash flows but also have the potential for value enhancement through targeted improvements and operational efficiencies. The core plus strategy aims to strike a balance between stable income generation and long-term appreciation. When pursuing a Core Plus strategy, we aim for the following:

The acquisition of stabilized properties.
Value enhancement opportunities.
Capitalize and improve on existing cash flow.
Long-term appreciation alongside current income.
Medium to long-term holding period, typically five to ten years.
Provide programs and services to help develop greater social interaction among apartment residents
Thorough due diligence and asset management to ensure the success of the asset.
Rebrand and reposition properties in the marketplace.
Increase operational efficiencies.
Increase occupancy and rental rates.
Provide programs and services to help develop greater social interaction among apartment residents.
Improve curb appeal, add or update outdoor and indoor amenities, update building exteriors, make unit renovations.
Perform utility conservation measures.
Upgrade lighting for energy efficiency and to improve safety.