Investment Criteria

AP focuses on growth markets on the East coast. We seek on and off-market listings, bank-owned, and non-performing distressed multi-family and hospitality assets to achieve attractive risk-adjusted returns for our investors.

Benefits of real estate

For decades, institutional investors have diversified their portfolios with commercial real estate.

Affect Property empowers a broader community of investors to access this cornerstone asset class and complement their portfolios.

The Case for Real Estate

Performance

High-quality private core commercial real estate has historically outperformed most other asset classes, delivering a 7.7% annualized total return in the 15 years to the end of the year. As shown in the graph below.

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Potential Income

Income is a major attraction of commercial real estate as an asset class. Historically, 70% of the total returns from commercial real estate have come in the form of income rather than capital. 

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Inflation Hedge

Real estate income over the last 25 years has increased at nearly the same average annual rate as inflation (2.92% vs. 2.31%).

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Low Correlation

Modern portfolio theory suggests that the most effective way to maximize returns while at the same time minimizing risk is to add uncorrelated assets.

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Primary Markets

1. New York & Metro Area
2. Boston & Metro Area
3. Philadelphia, PA
4. Baltimore, MD

Assets Type

Multifamily & Hospitality

Our Business Model

INVEST CAPITAL

REFURBISH OR RETROFIT TO RE-LET

REINVEST CAPITAL

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Buy

We acquire an asset if it has the potential to meet the evolving needs of our customers and communities, can be acquired at the right price, and is likely to create financial value for us.

Our Investment Policy defines the standards we set for acquisitions and guides us when making buying decisions. We may acquire a poorly performing asset if we see an opportunity to improve performance through investment and better management.

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Develop

We develop to create space that will appeal to customers, enhance the area, and create financial value for us. This activity creates job opportunities during construction and operation.

We design for safety, wellbeing, efficiency, and productivity. And we embed our sustainability principles in the design and delivery process.

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Manage

We work with customers, communities, and partners to ensure our buildings operate efficiently and help increase local prosperity.

We redesign and refurbish space to make it more attractive, useful, and valued. Thinking about sustainability helps protect buildings from external risks such as price volatility, changing regulation, supply issues, and premature obsolescence.

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Sell

We sell an asset when we see an opportunity to deploy capital more effectively elsewhere.

Through our investment and activity, the building we sell should perform at a higher level than the building we bought - financially, physically, and socially. This should make it more valuable. We always aim to build a positive legacy, leaving a place in a better state than when we arrived.

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Design | Build | Property | Asset Management

As a vertically integrated company, we leverage our extensive experience across our design, build, and property divisions to create a cohesive project team that works in tandem with our external supply chain to orchestrate successful project delivery.

Design
Our design division is a
boutique interior design
and branding studio
specializing in narrative
driven spaces and
concepts.
Build
Our build division
provides complete
construction
management, general
contracting, and design
and build services.
Property
Our property division
seeks out value-add
and opportunistic
transactions across
specific asset types and
geography to deliver
sustainable returns to
our investors.
Asset Management
Our management
division oversees the
management of
all Affect Investment
assets.

Key benefits

Our vertically integrated delivery model provides cost, program and quality certainty to our investments, safeguarding investors.

The traditional design – bid – build model is broken, fraught with delays, and cost overruns.
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Early subcontractor and specialist trades involved to de-risk construction costs and design risks.
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Internal procurement team with extensive procurement knowledge of finished materials and FFE to deliver savings.
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We can overlap the design and build processes to continually budget and procure long-lead items to deliver savings into the program and deliver greater cost certainty.
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Trusted and reliable supply chain partners with safety and environmental track records, who have been pre-qualified to ensure they are financially stable as well as able to provide resources.

Affect

Our Strategy

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TRANSACT
Identify and acquire
under-performing,
incorrectly positioned
and distressed assets.
VISION
Our internal design and
branding teams develop a
narrative-driven concept
after careful market analysis,
to reposition the asset with
a unique offering.
ASSESS
Examine all aspects of
the offering to
create a unique, inviting
guest experience while
also improving the
profitability.
REPOSITION
Renovate and
re-launch with a unique
proposition.
OPERATE
Relentlessly pursue
increased efficiency and
opportunities to enhance
the profitability and
utilization.
RE-EVALUATE
Determine if the asset has
optimized market position
and if not, determine
additional operating
changes or capital
reinvestment to further
improve value.

Investment Objectives

Taking our market research and data, we outline our strategy below.
Strategic Objectives
Deliver sustainable long-term investor value
Ensure high levels of customer satisfaction
Maximize the returns from the investment portfolio
Attract, develop, retain and motivate high performance
Maximize development performance
To be a best-in-class counterparty to our partners and supply chain
Investment Strategy
6 - 8% TARGET RETURN
LOW LEVERAGE (30%-50%)
– Lower risk
– Well-leased, stablized assets
– Most return from income
– Typical low leverage
10 - 12% TARGET RETURN
MODERATE LEVERAGE (50%-75%)
  • Medium risk
  • Assets in need of renovation or
    leasing
  • Niche property types
  • Return from income and
    capital appreciation
  • Typical moderate leverage
15% TARGET RETURN
HIGH LEVERAGE (75+%)
  • Higher risk
  • Assets with significant vacancy
    or developmen
  • Return mostly from capital
    appreciation
  • Typical higher leverage

Risk & Governance

Our leadership and advisory board understand their duty of care to stakeholders and investors to ensure we always act to protect their interests with stringent corporate governance.
We recognizes the importance of identifying and actively monitoring our strategic, reputational, financial and operational risks, and other longer-term threats, trends and challenges facing the business.

Capitalizing from a Vertically Integrated

Our USP: managing all stages of the process in-house allows us to acquire distressed or stalled projects, deliver higher than average returns to investors, and provide assurance that every project is delivered on time, within budget and to our rigorous quality standards.

Future Proofing Our Investments

Looking at future trends and developing our spaces to be utilitarian and adaptable will allow our properties to retain their value and desirability to future users and purchasers.
Inclusion of energy-saving, and sustainability features will be a key component of this strategy.

Asset Management

Our relentless pursuit of increased operational efficiency through proactive management ensures enhanced profitability and utilization.