Investment Strategy

Invest with AVGI. A sophisticated investment manager in the most intricate real estate market in the world.

OUR APPROACH

We engage in deep relationships with New York’s top commercial and residential brokers, along with a boots-on-the-ground direct-to-owner method to cover the market and source more than 20 deals a day to underwrite. When underwriting each deal, we underwrite using a rental fallback scenario, and present our offer based on that scenario. This allows us to keep our basis low and maximize our upside.

investment strategy

The New York City investment strategy targets assets that can be repositioned or vacant land that can be developed into boutique, luxury apartments that are more affordable than fully amenitized buildings. This strategy allows us to maximize gross livable area so that we are achieving as high, if not higher, total proceeds as fully amenitized buildings but at a lower price point for the homeowner.

A Top-Down, bottom-up approach

We focus our acquisitions in submarkets of New York City that are experiencing significant population growth and strong absorption rates. We then focus on the blocks within these submarkets that have an abundance of public transportation options, are very walkable, and have nearby parks, schools, grocery stores, and nightlife. Our target submarkets are composed of buyers that are first-time homeowners in New York City, and need to continue to stay within close proximity to work. All of the submarkets we are interested in are within a 30-minute commute to major employment hubs around Manhattan. After identifying the proper blocks within these submarkets, we focus on land or assets that meet our stringent underwriting criteria and can be acquired at a discounted basis.

INVESTMENT CRiTERIA

  • Purchase Price: $1,000,000 – $15,000,000
  • Vacant land, older buildings with air rights, distressed or mismanaged assets
  • Gross Buildable: 5,000 to 50,000 SF
  • Submarkets: Northwest Brooklyn, Central Brooklyn, Northeast Brooklyn, Western Queens, Central Queens, Lower Manhattan, Midtown Manhattan, Upper East Side, Upper West Side, Upper Manhattan
  • Neighborhoods with .75x+ Absorption Rates
  • Neighborhoods with 3%+ population growth over past 10 years
  • Positive correlation between rent growth and appreciation