.png)
VALUE ADD
INVESTMENT STRATEGY
Sunstone acquires properties with value-add potential in major US markets.
Why Multifamily?
​
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.
​
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.
​
​
​
2. Supply Constraints
​
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.
​
​
​
​
​
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.
