Investment Strategy

Targeted Acquisitions

Our investment strategy focuses on acquisitions in the sub-institutional apartment investment space within target markets. We seek to acquire mismanaged and under-performing apartment assets in the most preferred sub-markets targeting capital inflow, population and income growth, and gentrifying neighborhoods.

We leverage our long-standing network and years of local operational experience within the apartment investment market to tap into direct broker and owner relationships and secure off-market and pre-market investment opportunities.

Due Diligence

We perform comprehensive financial, physical and market due diligence prior to closing on a new investment, including:

  • Obtaining a detailed property condition report from an experienced and licensed inspection firm of the entire asset

  • Studying the chain of title and all title and survey components with our legal counsel

  • Analyzing potential financing options to best align with our business plan and investors

  • Reviewing the operating history, leases / estoppels, capital improvement history and all other data provided by the seller

  • Researching recent lease and sale comparables, as well as the broader sub-market

  • Receiving bids from our deep network of tradesmen and subcontractors for any capital improvements deemed necessary

Value-Add

After acquisition, we embark on our value-add business plan by completing extensive capital improvements, capturing market rents, developing additional units, reducing operating expenses, and implementing experienced local property management.

Each step of the value-add process undergoes detailed and conservative underwriting by our executive leadership, which has extensive institutional commercial real estate experience having underwritten over $10 billion in investments, to ensure efficient capital deployment.

Financing

Swallow Hill Investments looks at all opportunities with a long-term hold philosophy. We do not employ bridge and floating rate debt, only fixed rate, to minimize vulnerability to interest rate volatility. Depending on market conditions and discussions with our investors, we may exit our investments via cash-out refinance or sale.

Given our executive leadership’s years of experience at the private equity and institutional lending level, we also have a wide-range of preferred lending relationships including everything from agency lenders, local and regional banks, major life insurance companies, and credit unions.

Structure

We partner with investors to diversify capital into commercial real estate using a programmatic joint venture structure.

New investors sit down with our team to formulate a curated business plan that satisfies their investment priorities, whether that is a focus on cash flow, tax protection or wealth growth. Targeted purchase price / equity contribution, leverage level, and location are all additional factors we work to customize for each investor.

After this business plan and criteria are created, our team monitors the market daily for compelling opportunities and presents them to the investors for potential acquisition. Unlike a syndication or fund structure, our investors get decision making rights over sale and refinance timing depending on their contribution percentages.