investment philosophy

Renovate · Reposition · Return Capital

Invest with us

Acquire and manage a portfolio or feal estate investments in urban locations in the path of anticipated growth.

Acquisition Criteria.

Focus on properties that we believe can produce a consistent cash distribution after successful repositioning or redevelopment, and the opportunity for capital appreciation over an expected 5-7-year hold period.

Acquisitions may include properties with potential for

market repositioning
redevelopment, or
ground-up development

Target Assets

Investment Profile: Value-Add

Investment Geography: Atlanta, Raleigh, Charleston, and other major MSAs across the U.S.

Investment Asset Clasees: Mixed or single use properties incorporating office, retail, multifamily, for-sale residential, parking, unimproved land, warehouse/flex, or hotels

Investment Size: $10-$40 million

How we buy

1.

Targeting B and C Class Multifamily Apartments.
Your fund focuses on acquiring B and C class multifamily apartments. These classes often present opportunities for investors due to their affordability and potential for value appreciation. These properties are typically well-suited for income generation and value addition strategies.
2.

Cash Flow from Day 1
One of your primary acquisition criteria is that properties must provide positive cash flow from the very first day of ownership. This approach minimizes risks and ensures that the investment starts generating returns immediately.
3.

Value-Add Strategy
You identify properties with the potential for value creation through operational efficiencies and property updates. This value-add strategy can involve improving management practices, reducing operating expenses, and enhancing the property's overall appeal to tenants.
4.

Focus on Growing Markets
Your fund selects properties in markets that are experiencing organic growth. This means you target regions where demand for rental housing is increasing due to factors like job opportunities, population growth, or infrastructure development. This market selection enhances the long-term appreciation potential of your assets.

Invest with Zavala Capital

We believe in maintaining complete transparency and open communication with our investors. Our primary focus is on serving our investors, residents, and our team with an unwavering commitment to excellence.

Invest

How we manage

You engage experienced property management teams to oversee all your deals. Skilled property managers can efficiently handle tenant relations, rent collection, maintenance, and other day-to-day operations, ensuring that the properties run smoothly and generate steady rental income.
Property rebranding can breathe new life into older or neglected properties. By modernizing the property's image, name, and marketing materials, you can attract a broader tenant base and potentially command higher rents
Upgrading the interiors and exteriors of the properties enhances their appeal and value. This can include renovations, landscaping improvements, and amenities enhancement to attract and retain tenants.
After acquisition, your team focuses on stabilizing the property by bringing rents and occupancy levels to market standards. This can involve marketing efforts, tenant screening, and lease management to optimize the property's performance.
You ensure proper insurance coverage, control expenses, and optimize revenue streams. Managing expenses efficiently and maximizing income through rental rates and other revenue sources are key to enhancing the property's profitability.
Cost-effective sustainability measures, such as installing water-saving faucets and toilets, not only reduce expenses but also contribute to environmental responsibility. These improvements align with the growing demand for eco-friendly housing and can attract environmentally conscious tenants.

How we exit

1.

Consideration of Various Exit Options
Zavala Capital recognizes that there is no one-size-fits-all approach to exiting real estate investments. Therefore, the company carefully considers various exit options that best align with the specific deal and the needs of its investors. This flexibility allows Zavala Capital to tailor its exit strategy to the unique circumstances of each property.
2.

Timing and Stabilization
One key principle of your exit strategy is the importance of timing. Zavala Capital aims to exit investments when the property is stabilized and when market conditions are favorable. Stabilization typically means that the property has achieved a steady level of occupancy, rental income, and expenses are under control, and any planned renovations or improvements have been completed. Exiting at this stage can maximize returns and reduce risks associated with property management.
3.

Refinance and Capital Return
One exit option that Zavala Capital explores is the possibility of refinancing the property. This strategy can allow the company to pull out equity and return capital to investors. Refinancing is especially attractive when interest rates are favorable or when the property's value has appreciated significantly since the initial investment. Returning capital to investors through refinancing provides liquidity while allowing them to maintain an ownership stake in the property.
4.

Selling with Professional Advisors
When the decision to sell a property is made, Zavala Capital follows a professional approach. The company engages local advisors and brokers who are experts in the real estate market of the specific area where the property is located. These professionals have a deep understanding of local market conditions, pricing, and buyer profiles. By leveraging their expertise, Zavala Capital can ensure a well-informed and strategic sales process.
5.

Institutional Investor Targeting
Zavala Capital looks for institutional investors when selling fully stabilized properties. Institutional investors often have a strong interest in well-maintained, income-generating properties. By targeting this type of buyer, the company aims to optimize the selling price and facilitate a smooth transaction. Selling to institutional investors can also offer more liquidity compared to selling to individual buyers.