APP Operates in an Untapped Market Sector
- Our typical property costs between $2MM to $50MM and has 25 to 250 apartments.
- This is too big for most individual investors and too small for most institutions.
- Properties are acquired for approximately 60% of replacement cost, i.e. 40% discount versus developing.
- This sector selection has enhanced our LPs’ returns and reduced their risk.
Benefits to our Limited Partners
- Andover Property Partners is an equity investor in the properties, aligning our interests with those of our Limited Partners.
- Our LPs enjoy the ease of partnering with one company that handles every aspect of identifying, acquiring, and owning properties.
- Our LPs are insulated from the burdens of owning a property by themselves.
- LPs partner with an experienced owner/operator who has a proven track record – our results evidence our abilities.
Track Record and Our Experience
- Historical annual cash-on-cash returns paid to our LPs has been 14.5%*.
- True economic returns are several percentage points higher due to mortgage principle pay down and the tax benefits from depreciation.
- Our properties have always appreciated after we raise rents.
- The potential of cash out refinancing may expedite and magnify the LPs’ returns.
*No representation of guaranteed returns has been made. Past performance is no guarantee of future results.