Acquisition Equity

Acquisition Equity (A.E.), based in Upper Marlboro, Maryland, is an investment company that plans to purchase and rent multi-family housing units that attract a specific market segment of middle-income earners, utilizing top property management firms.

The market for multi-family housing units presents a favorable climate for implementing Acquisition Equity’s metropolitan property investment plan and keeping our funnel full of motivated sellers often working directly with apartment owners who are eager to sell, but who often are without an agent or broker.  This would lower points and leave more money on the table.

With record-breaking foreclosures in the U.S. and millions of credit-challenged families seeking lower cost, transitional residences, A.E. is proposing its multi-family home investment plan at an opportune time, taking advantage of an economy rebound expected in 2010-2011. 

According to Greg Willett, vice president for Research and Analysis at M/PF Yield-Star, Inc., Washington, DC is one of the healthiest of the nation’s very active apartment construction centers.  Ongoing development at the start of 2008’s fourth quarter was about 10, 400 units, with a sizable block of that comprised of properties that began construction as condos but will be completed as apartments.

In addition, Research from Delta Associates points out that the Washington metro area is the third-largest apartment market in the US, next to New York and Ls Angeles.

Acquisition Equity will first investigate investment opportunities throughout the Washington, DC, metropolitan area.  Then, by leveraging industry expertise and performing efficient property acquisition, A.E. will work to obtain a market share in emerging real estate pockets following the path of progress surrounding our nation’s capital.  A.E. actively penetrates new growth markets and welcomes new partnerships in its multi-family acquisitions.  A.E.’s strategy is to acquire B and C properties that are within improving B and C neighborhoods.  Although A.E. will not manage the properties directly, its physical proximity will allow for a quick response to any challenges or changing conditions.

Acquisition Equity targets individuals between the ages of 18 to 34 with incomes of $35,000 and less.  More than 22 percent of Americans fall within this age range and have a per capita income of $27,916.  A.E. will operate in the $36 billion Apartment Building Operators industry.  A.E.’s main competitors include other multi-family investment companies such as Kingston Realty, LLC, Carrollwood Acquisiton, and East Field Realty Corp.

Today, the professional apartment management firm must have a comprehensive understanding of the economic forces at work within the real estate market, forecast its future potential, and construct a management plan to maximize the building's potential market value, while remaining flexible in responding to the demands of the ever-changing real estate market.

A primary benefit of choosing A.E. over other local investment companies is the integrity upon which by utilizing internal controls and focusing on strong management, A.E. will avoid the inevitable downward spiral that is so prevalent in other investment firms that guarantee inflated rates of return.  Often this guarantee results in deferring much needed maintenance on their properties in which much needed repairs are neglected to save money in the short term, resulting in dissatisfied tenants.  The primary reason tenants move is due to deferred maintenance.  Turnover averages 62% in a year, thus a full 100% every 18 months.  Keeping tenants satisfied with their living conditions greatly reduces turnover, which in turn, decreases the return to the investors.

It has, therefore, outlined a promotional plan that includes referrals, internet advertising, print media ads, signage, and flyers. 
A.E.’s region-wide campaign will be to effectively boost brand awareness and attract new acquisitions.                               







Acquisition Equity