Investment Strategy

Investment Criteria

Regency specializes in select secondary and tertiary markets across the midwest.

Focusing on cities and markets that are anchored by major institutions with a stable population base.

We specialize in Select Secondary and Tertiary markets anchored by major universities, hospitals, and state government. Our target markets have proven to generate consistent returns while being less susceptible to downturns in the national economy.

We are continually adding to our portfolio of multifamily residential properties through value-add acquisitions and new development. We utilize our diverse and extensive database of industry contacts to create a proprietary investment deal flow.

  • Secondary and Tertiary Markets in IA, IL, IN, KY, MN, MO, OH, TN, WI
  • MSA’s greater than 100,000 and less than 2,000,000
  • Less than 20-minute drive from Colleges and Universities with more than 20,000 full-time students
  • Less than 20-minute drive from the State Capital
  • Less than 20-minute drive from Hospitals & Medical Facilities with more than 5,000 full-time employees
  • Minimum of 150 Units
  • Built after 2000 with 9ft. Ceilings, Functional Floorplans Including Washer and Dryer, and Ample Amenities and Common Areas
  • Market Rate Existing Suburban Garden
  • No more than 33% Undergraduate Resident Profile on University Properties
  • Total Investment $20M to $50M
  • When stabilized, non-recourse Agency Debt with Maximum Leverage of 75%

Underwriting

Potential acquisition and new development opportunities are conservatively underwritten to the following standards.

If your organization has an acquisition or development opportunity in our identified markets, please submit a proposal for review.

Regency Investment Funnel

1 – GEOGRAPHICAL

  • States- IA, IL, IN, KY, MN, MO, OH, TN, WI
  • MSA’s > than 100,000 & < than 2,000,000 population
  • Universities: < than 20-minute drive from Colleges & Universities > than 20,000 full-time Students
  • State Capitals: < than 20-minute drive from the State Capital
  • Medical: < than 20-minute drive from Major Hospital & Medical Facilities > than 5,000 full-time Employees

2 – PROPERTY CRITERIA

  • Total Investment of $20M to $50M
  • Minimum 150 apartments
  • Market Rate Suburban Garden Style
  • Value-Add Upside Opportunity or New Development
  • Built after 2000 with 9 ft. Ceilings, Functional Floorplans Including Washer and Dryer Hookups, and Ample Amenities and Common Areas
  • No more than 33% Undergraduate Resident Profile on Student Properties

3 – MARKET ANALYSIS

  • Areas and Submarkets with Positive Employment & Population Growth Trends
  • Stable Local Economy with a College, University, Medical Facilities, or State Government Creating a Sustainable Market

4 – FINANCIAL ANALYSIS

  • Project Level IRR 14% ↑
  • Stressed Project Level IRR 12% ↑
  • Equity Multiple 2X ↑

5 – DUE DILIGENCE

  • Environmental Study
  • Physical Inspection
  • Survey
  • Lease Analyses
  • Appraisal

Submissions

Regency is opportunistically looking to expand our portfolio footprint in identified markets.

30% of Regency’s Deal Flow is Generated Off Market.

We value our industry relationships and engage in Buyer Broker Agreements for select off-market opportunities. If you would like to submit a property for us to view please, at a minimum, submit the following items: Property name, location, age, number of apartments, and property photos including aerial shots. To discuss opportunities, please contact Teresa Kelnhofer, President.

Teresa Kelnhofer
President & CEO
Regency Multifamily
(217) 359-7031