Multifamily Focus
Spruce Properties has an exclusive focus on multifamily, having deep expertise and specialized knowledge in the sector.
Institutional Discipline
- Disciplined Investment Approach: Evaluates thousands of opportunities annually, investing in less than 1%
- Strategic Focus: Targets opportunities with significant upside
- Robust Risk Management: Ensures strong downside protection through careful analysis and planning
Management Strategy
- Long-Term Ownership Focus: Underwrites assets with 10+ year hold periods to implement value-creation strategies that enhance long-term property value and performance
- Durable Improvements: Prioritizes lasting enhancements over short-term cosmetic fixes
- Flexibility in Exit Strategy: Maintains the ability to exit early if business plans are accelerated, or to hold through full real estate cycles, avoiding forced sales
Aligned Interests
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- Coinvestment: Spruce Properties commits 10%+ in co-investment to every deal, ensuring shared goals and mutual commitment to success
- Investor Benefits: Delivers high multiples on invested capital and highly tax-efficient returns to meet ownership and investor goals of building wealth in a tax efficient way
Investment
- Tax Efficiency Strategies: Utilizes cost segregation studies to maximize depreciation and offset taxable income
- Capital Gains Deferral: Offers investors the option of a 1031 like-kind exchange into a new Spruce Properties investment upon disposition, delaying capital gains tax
Integrated Property Management
- Operational Excellence: In-house property management division, New Urban Residential, ensures hands-on, localized oversight
- Enhanced Tenant Satisfaction: Focused on delivering exceptional living experiences
- Improved Efficiency: Streamlined operations drive performance and long-term asset success
Acquisitions Strategy
Market Selection
Spruce Properties strategically selects markets with strong long-term potential, prioritizing high-growth areas with robust economic fundamentals. Additionally, Spruce looks to invest in markets that have landlord-friendly legislation and pro-business governments. These markets include Charlotte, Columbus, Des Moines, Indianapolis, Kansas City, Nashville, and Raleigh
Value-Add Business Plans
Spruce Properties focuses on implementing value-add business plans in every investment. By leveraging its fully integrated operations and renovation platform, the firm enhances property value through targeted upgrades and strategic repositioning, driving capital appreciation for investors.
Deal Parameters
Spruce Properties pursues well-located multifamily assets ranging from $30 million to $300 million, with 150 or more units, and built in 1990 or later.