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Employee Celebration – May

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AFI would like to congratulate Manager, Brandon Bailey, for his recent excellence on property! Brandon joined the AFI team over a year ago and has managed a Georgia-based asset since March of 2018.

May has been a calendar month for Brandon as he continues to maintain 100% occupancy at the asset and recently achieved his monthly renewal goal with time to spare.

Additionally, Brandon oversaw the completion of all Property Improvement Projects in less than 14 months while being almost $20,000 UNDER budget!

Brandon has proven to be a valuable member of our team and we are looking forward to his continued success in the future!

Colin CosbyEmployee Celebration – May
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AFI Employee Appreciation – May

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AFI would like to introduce, Brian Kelly, our Business Development and Operations Specialist! Brian is a proud University of Georgia Bulldog that has been with AFI for over two years.

Brian started with AFI operating an asset in Georgia before taking on additional responsibilities at the corporate level. Now, Brian assists with and oversees several different facets of our business including Manager mentoring, due diligence inspections, and completion of capital improvement projects.

Thanks for all of your hard work and commitment to our team, Brian!

Colin CosbyAFI Employee Appreciation – May
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Mizzou Students Awarded Internship Opportunities with AFI!

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Alexander Forrest Investments is proud to welcome our newest additions to the team, Jake Heyen and Jacob Resnick! Jake and Jacob are both currently sophomores at the University of Missouri-Columbia.

Jake is a dual Business Administration and Statistics major with an emphasis in Finance, and will be assuming the role as Accounting Intern with AFI later this summer.

Jacob is pursuing his Bachelor of Arts in Communication with a concentration in Public Relations. Jacob will be working alongside our Leasing and Collections team as a Marketing Intern.

Both of these talented individuals had to endure a rigorous interview process to receive an offer, and we are very proud to welcome them both as members of our team!

Colin CosbyMizzou Students Awarded Internship Opportunities with AFI!
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Keeping Up With AFI!

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Click the icons below and be the first to receive updates from Alexander Forrest Investments by following us on social media!

Our team is looking forward to sharing company updates, recent success stories, and other news regarding the multifamily real estate market!

 

Colin CosbyKeeping Up With AFI!
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AFI Success in NC!

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Strong leadership from AFI headquarters in Columbia, MO coupled with stellar Onsite Management has resulted in an average income increase of over $7,000/month!

 

Colin CosbyAFI Success in NC!
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Why buy B and C class apartment assets in today’s market?

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1. Tenant Pool Stability

On the apartment quality scale of A—B—C—D, owning A-class assets is not all it’s cracked up to be. In an economy of fluctuating incomes and employment, with underemployment as a growing trend, holding owning B- and C-class assets is the most enviable position because these asset classes benefit most from ‘downward mobility’ pressure being exerted on the tenant base. Former A-class tenants are not going down to D-class units. Rather, they are settling for B-class apartments. Similarly, former B-class tenants are settling for C-class apartments. Given that D-class properties are uniformly crime-ridden and unsafe, the bulk of the pre-existing C-class tenants will strive to remain in a C-class property, spending more on housing than the average tenant by sacrificing elsewhere.

2. Non-Speculative Market Space

There is one very important question to answer when contemplating the development or purchase of an A-class apartment asset—Is there a large enough pool of viable tenants with the economic means and the appetite to live in the most expensive, albeit most richly appointed, apartment property in the area? While the most expensive product on the market carries distinction and prestige, these features do not necessarily lead to greater sales. In our unpredictable economic climate, we can emphatically affirm that these assets do not typically produce meaningful financial returns for investors.The most important question to ask regarding prospective B or C class asset is this: Does the property have the right problems? That is, does the property have:

  • Deferred maintenance, and/or
  • Poor management

Deferred maintenance and poor management are quickly remedied by the application of intelligent and aggressive property management fundamentals. Commanding property management focused on correcting physical deficiencies, improving tenant quality, and introducing tenant-centric services produces momentous returns on investment.

B- and C-class assets are established properties in their respective sub-markets, and new C-class apartment buildings will not be built at the same class level because construction costs are prohibitive. Additionally, C-class assets can be elevated to B-class properties with a recoverable cost basis. In most cases, the cost of entry is too high to elevate B-class assets up to A-class quality.

3. Cost of Entry = Volume

Compared to A-class assets, the per-unit cost of B- and C-class assets allows for many more units to be purchased for the same capital investment.

4. Less Competitive Acquisition Environment

Effective B- and C-class apartment management is complex, involved and downright messy. It requires hard work, singularity of focus, rehearsed professional processes, intelligent decision-making, sharpened experience, industry expertise, broad vendor connections and gritty determination. These facts can intimidate investors who are accomplished in investment acquisition, but who lack real-life management skills and experience.

AFI excels at the real-life, day-to-day management needed to support the discerning investor’s objectives.

tourvistaWhy buy B and C class apartment assets in today’s market?
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