VALUE ADD

QUALIFIED OPPORTUNITY ZONE

LIHTC

INVESTMENT STRATEGY

Sunstone acquires properties with value-add potential in major US markets. 

Why Multifamily?

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1. Homeownership Decline.

• After peaking at 69% in 2006, homeownership rates have declined to 64% which has contributed to continued momentum in the multifamily sector. 

• Real wages have been stagnant and even declined for adults ages 25-34. 

• People are delaying marriage and childbearing which delays homeownership. 

• Student loan debt has increased 48% to $140 trillion over the past 5 years hindering household ability to save for a down payment.

• Qualifying for a mortgage has become increasingly difficult.

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2. Highest-Performing Asset Class

• The public multifamily sector has outperformed every other major public property sector over the past 10 and 20 years

• Revenue risk is spread over many tenants and is not dependent on the performance of a few major tenants

• Provides a basic human need that is essential in every economic cycle

Why Multifamily Class B/C?
CASE STUDY: DALLAS & HOUSTON


 

1. Less Vacancy Risk

     Since 2006, Class B apartments have averaged 92% occupancy

     compared to 87% for Class A.

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2. Supply Constraints

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    From 2006 to 2016 in Sunstone's target markets, Class A apartment

    supply has averaged 10.9% annual growth while Class B supply has

    averaged 1.0% annual growth. 

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3. Rent Growth

   Since December 2014, rent growth for Class B apartments is more

   than 3x the rent growth for Class A apartments in Sunstone's target 

   markets of Houston and Dallas. 

FEATURED VALUE-ADD PROPERTIES

OUR STRATEGIES