INVESTMENT PHILOSOPHY

Renovate · Reposition · Return Capital

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.
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.
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.
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.
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.

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

OUR MARKETS

Apply proven value add model implemented in metro Atlanta market to other southern and southeastern primary markets.

Zavala Capital's strength lies in…

Its vertical integration approach, encompassing asset management, property management, and renovations. This strategy provides the company with a unique advantage in the real estate market.

OUR FUND INVESTMENT STRATEGY

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

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.

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.
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.
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.
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.

HOW WE BUY

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.