Create value before acquisition.

We know the quicker we increase net operating income, the sooner our investors see returns on their equity. Just as important, this approach provides greater certainty — a key component of WWC’s Growth DNA. During the acquisition cycle, we consider the passing of the non-refundable stage our triggering event. At this point, we begin implementation of our 24-point checklist of near-term improvements and action items. On acquisition close, we quickly execute all pre-arranged improvements.

This is part of our six-stage strategy. We acquire undervalued multi-family rental properties; carefully allocate capital to accretive improvements; optimize operations to increase the asset’s net cash flow and valuation; refinance to return equity to investors; and, when appropriate, divest.

execution

1. Acquisition

We target multi-family properties where we can physically increase the net operating income, above and beyond natural appreciation. We typically acquire properties, located close to major transit routes and employers, that have unusually high vacancy rates and are poorly maintained and/or operated.

2. Capital Improvements

We have a standard and successful program that has been applied across our entire portfolio. From Day 1 we invest capital in accretive building/infrastructure improvements and new amenities. Units are updated with washer/ dryers and and interior upgrades that command additional rental income.

3. Optimize Operations

Typically, rents are not uniform or reflect market rates. We normalize the rent structure and raise rents, as appropriate. We leverage economies of scale to reduce costs. We market the property. Our capital improvements and experienced property management team have proven to not only increase income and occupancy rates, but resident retention as well.

4. Increase Valuation

Our modest capital investment generates materially accretive returns. Our track record shows the resulting increase to net operating income, using a conservative capitalization rate, can increase a property’s valuation equal to investors’ original equity.

5. Refinance

We leverage supplemental financing because our investors value certainty. We ensure our loan terms allow for an annual appraisal to leverage improved NOI and property value. We increase the existing loan to return equity back to investors.

6. Divest

We have fully executed on our strategy from acquisition through to sale. Our investment strategy typically has a three-to-five year horizon. Our investors have averaged more than 20% annualized returns upon sale.

OUR TRACK RECORD

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TOTAL AVERAGE ANNUALIZED RETURN: 31%

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