Multifamily Real Estate Investment

Real estate is primed for future growth in value

WHY REAL ESTATE?

Interest rates have trended downward over the last 3+ decades, and relative spreads for real estate vs. bond alternatives are at or near record levels.

Relative Valuation

WHY MULTIFAMILY?

Supply & Demand

Apartments are primed to capture future upside.

Supply growth in th intermediate-term will be steady.
Positive rental market trends should lead to an attractive development market over the next five years.
Improvements in the labor market will continue to benefit apartment fundamentals across most markets, as payrolls exceed pre-Covid levels after ‘22.
Uncoupling of young adults from parents/roommates will benefit near-term demand.
Surging home prices will lead to tenants renting longer, pushing vacancy down and rents up

Why opt for

Zavala Capital Group

4,411 Total Acquired Units

1,088 Units Under Management

$800M Total Transacted Volume

$160M Assets Under Management

16 Months AVG Holding Period

2.1x AVG Equity Multiplier

84.9% AVG IRR

KEY BENEFITS

Cash Flow and Passive Income

Receive periodic disbursements without significants effort beyond your initial investment.
Appreciation

The value of property is a product of income, not of comparable properties. This allows control of appreciation by optimizing net-operating-income (NOI) through increased revenue and controlled expenses, also known as forced appreciation.
Minimized Volatility

Price speculation is minimized at the asset market - level compared to homes, condos, stocks, bonds, REITs, and other investments.
Inflation Hedge

Inflation and rents are directly correlated. With higher inflation, rents tend to increase, protecting our cash flow and asset value.
Amortization and Debt

Real estate can be easily financed, magnifying results. Also, as debt is paid off, principal is being paid down, increasing investors’ equity.
Diversification

Private multifamily deals offers alternative strategic opportunities beyond stocks and bonds, allowing asset type and geographic diversification.
Deal Creativity

Multifamily allows for creativity in deals beyond acquisition and disposition price. Creative strategies can improve cash flow and value.
Tax Benefits

Multifamily real estate may generally be depreciated at a rate of 27.5 years vs. 29 years for other commercial Real Estate . Furthermore, depreciation can be accelerated with tools such as cost segregations and bonus depreciation. Also, a significant portion of returns can be taxed as capital gains as opposed to ordinary income.
Operational Inefficiencies

Operational inefficiencies allow space to increase NOI, therefore creating opportunity to improve value and cash flow.
Lender Relationships

For multifamily investors, potential volume positively influences lender relationships and terms.
Tangible Investments

Multifamily assets are stable, physical assets you can actually see and even visit.