INVESTMENT FOCUS

Clearlake seeks to generate attractive risk-adjusted returns with upside potential through capital appreciation or repositioning, with an emphasis on increasing property-level reoccurring net cash flow, by acquiring underinvested workforce housing and apartment buildings in urban transitional neighborhoods.

Underinvested workforce housing means non-luxury-class apartment properties that serve primarily workforce tenants, that may benefit from improved management, renovation and capital improvements that result in quality, secure rental housing. An urban transitional neighborhood is typically an infill city neighborhood undergoing positive change due to local employment generators, lifestyle preferences (such as preferring to forgo long work commutes), and/or gentrification.

We focus on major cities in the Southeastern sunbelt states, shown in green below:

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INVESTMENT
OBJECTIVES

Capital preservation and attractive risk-adjusted returns

Create value through business plan execution and a hands-on asset management approach

Target a niche in asset size (50-200 units), asset class (B to C class properties) and total deal size ($5MM-$15MM) that separates Clearlake from the highly-competitive Class-A institutional multifamily marketplace.

INVESTMENT STRATEGIES

Underinvested Mid-tier Housing

  • Class B and C in Mid-tier neighborhoods, with positive local employment growth or other fundamental value drivers
  • Properties that are under-managed or undercapitalized
  • Opportunities that are mispriced or overlooked in the current market
  • Utilization of a rigorous and proven investment screening, modeling, business plan generation and execution process

Urban Neighborhoods in Transition

  • Older, Class B to C apartment buildings in strong locations in rising neighborhoods
  • Employ the spectrum of capital improvement plans from cosmetic interior and exterior improvements to complete rehab
  • Look for assets standing to benefit from changing lifestyle preferences, particularly catering to those potential tenants that seek vibrant in-city neighborhoods that offer short commutes to the city core
  • Utilization of a rigorous and proven investment screening, modeling, business plan generation and execution process

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