© 2019 Sunstone Properties Trust

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. 

FEATURED VALUE-ADD PROPERTIES

RESIDENCE AT WEST BEACH

Galveston, Texas

An 133-unit community in the beachfront neighborhood of Galveston Island.

HAVEN AT LAKE DEER

Winter Haven, FL

A 368-unit property between Tampa and Orlando, bordering one of Winter Haven’s beautiful lakes.

COMMONS AT WESTCHASE

Houston, TX

A 282-unit garden-style apartment property in Houston’s Westchase district.

FLINTRIDGE APARTMENTS

Arlington, TX

An 188-unit multifamily asset located in between Dallas and Fort Worth. 

VILLAGE AT WESTCHASE

Houston, TX

A 462-unit garden-style apartment building in Houston’s Westchase district.

1805 S REDWOOD ROAD

Salt Lake City, UT

A 22,000 SF office building located in the center of the Salt Lake 
Valley.

OUR STRATEGIES

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