Arsenal Capital solely focuses on repositioning multi-family assets in growth markets across the Midwest. We seek to generate attractive risk-adjusted returns across market cycles and over the long term for our investors by identifying strategic opportunities where we can build value in underperforming assets.
The firm employs a straightforward investment strategy. We seek to acquire assets at a significant discount to replacement cost, maximize value by addressing any physical or operational issues through aggressive asset management and targeted value-add initiatives, and look to capitalize on the investment once the asset is stabilized.
Arsenal Capital’s acquisition criteria are focused on acquiring undercapitalized and/or mismanaged multi-family assets and executing intensive asset management and capital improvement program in order to drive performance and maximize returns. The firm seeks opportunities in markets with strong underlying fundamentals and targets submarkets where household income can support future rent growth. The strategy generally targets investment opportunities that exhibit the following acquisition criteria:
Deal Size: $5 million to $50 million
Property Type: Garden Style and Mid-Rise Residential Apartment Communities
Vintage: 1968 to 1989
Quality Asset Class: Class B and C (Distressed and/or Stressed Assets)
Property Size: Single Asset or Portfolios
Location: Cycle Dependent (Secondary to Tertiary Markets throughout the Midwest United States)
Turnaround Situations: Mispriced, Underperforming Assets and/or Properties with Below Submarket Vacancies and Transitioning Demographics
Capital Expenditures: Partial to Full Renovations across Interiors, Exteriors, and Amenities