APPA Real Estate (“APPA”) is an investment management firm providing accredited investors opportunities to invest their capital alongside experienced operating partners who have a proven track record of success delivering attractive risk-adjusted returns.
Our goal is to help investors build long-term wealth and passive income streams through a diversified offering of multifamily value-add and development investments located in growing regions across the U.S.
APPA’s senior management team has been investing on behalf of institutional advisors, pension funds, private equity firms and individual investors for the past 20 years.
APPA believes the apartment market, as an investment type, offers investors greater returns with less risk than other investments. The apartment market is less reliant on business cycles for occupancy and, in our target market, should continue to benefit from demographic trends and population growth.
At APPA, we focus on three fundamental principles: Location, Value Creation, and Timing. The primary driver in real estate economics is net in-migration, which is location-based. We focus on markets with a long history of population growth. A growing, diverse employment base is the second determination of location and market. We track submarkets and employers undergoing expansion in five key industries: Healthcare, Technology, Education, Government, and Energy. These industries have above market employee compensation, and three of the five tend to hold steady when the economy slows. Timing of the real estate market, although challenging, is an equally important aspect of the principles. Supply and demand is the most widely, and easily-tracked market index reflecting timing. The investment cycle requires a deep understanding of capital availability including both equity and debt, interest rate trends, and cap rates.
APPA targets distressed assets in established markets within which we are familiar. There are two primary types of these distressed opportunities we may pursue: asset-owner distress and building distress. Asset-owner distress exists when the current owner has experienced various challenges that must be solved independently of the market. Building-distress exists when physical assets may not have been properly maintained and or are not up to current codes and therefore require significant capital expenditures and workout expertise to turnaround. Both types of distress present unique opportunities and challenges that exist throughout the full economic cycle, thus offering APPA the ability to succeed through up and down markets.
APPA maintains separate operating accounts for each property. Every investment must stand on its own merit. In addition to providing detailed monthly operating reports direct from property management, APPA prepares and distributes quarterly financial reports comparing actual performance with original projections.
B Corp Certification
APPA became a Certified B Corporation in 2018. B Corps are a new type of company that uses the power of business to solve social and environmental problems. B Corp certification is to business what Fair Trade certification is to coffee or USDA Organic certification is to milk.
APPA was certified by the non-profit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency. We’ve evaluated how our practices impact our employees, our community, the environment, and our customers.
Today, there are over 2,200 Certified B Corps around the globe. We are proud to join them in redefining success in business, so that one day everyone uses business as a force for good. To learn more about our certification, check out our B Corp profile.