Over the Previous 10-Year Period RedHill has Averaged
Project Level Returns to Investors on Value-Add Executions.
We Focus on population and employment metrics including growth rates, household formations, household incomes, age brackets, education levels, diversity of employment, and proportion of high-skilled industries, and the workforce.
Our team concentrates on acquiring in supply constrained submarkets with high barriers to entry. Assets in markets with highly rated schools, low crime rates, and access to retail and employment centers.
We like well-constructed assets with limited-to-no functional obsolescence and a preference for unique features and attributes such as low density, attached garages, two-story product, and competitive amenities.
RedHill favors Class-B communities which attract the widest demographic, including middle market and workforce housing. Core-plus, assets that provide stabilized cash flows and near value-add risk adjusted returns are of high interest.
We underwrite utilizing a proprietary and comprehensive pro forma and sensitivity analysis to fully understand the economics of an acquisition which includes stressing the model to account for future impact on a property’s potential return.
Our team seeks to understand the complete STORY behind an offering—What are the drivers, where is the hidden value, what is the replacement value. What is the rationale to own a particular community.
Thinking out of the box enables us to see situational opportunities with arbitrage value including portfolios or troubled assets that can be acquired and repositioned with opportunistic yields.
We continue to build on our track record to innovate into new value strategies, drive growth and serve our investors.
Recognizing that real estate markets are a constantly changing mix of variables including shifts in capital markets, trends, macroeconomics events and changing regulatory environments, RedHill has the capability to uncover, originate and underwrite sophisticated opportunistic events. They may range across the spectrum from acquiring irreplaceable assets in high barrier-to-entry markets to identifying and acquiring properties at or below replacement costs in markets where misplacing has occurred.
RedHill believes associated demographics will drive significant and increased demand for rental and owner housing over the next 10-20 years and beyond, as housing redefines itself to accommodate the needs of the millennials, the aging baby boom, immigration and other household formations and emerging markets. RedHill intends to capitalize on this anticipated oncoming growth and market transitions by investing within the sector exclusively.