How we source, underwrite, and operate 20+ unit value-add multifamily across northern New Jersey
We seek specific property characteristics that align with our value-creation thesis
Below institutional threshold, above retail buyer reach — meaningful scale with limited competition
Solid construction with value-add renovation opportunities
Bergen, Essex, Hudson, Union, and Passaic — markets we know parcel by parcel
Below-market rents with clear path to market-rate through renovations
Aging owners ready to transition, often with deferred maintenance
Purchase price significantly below new construction costs
Disciplined execution from acquisition through exit
Combine the Taylor Lucyk Group's NJ-wide brokerage network with our proprietary owner-intent data on ~16,900 northern NJ multifamily parcels to reach long-held private owners before deals hit the market.
Execute strategic light-to-moderate renovations that maximize ROI while respecting tenant occupancy and maintaining cash flow during the value-add period.
Implement institutional-grade property management practices to optimize operations, enhance tenant experience, and maximize net operating income.
Upon stabilization with improved rents and NOI, evaluate optimal exit strategy: refinance to return capital, hold for long-term cash flow, or execute strategic sale.
Conservative assumptions, stress-tested models, and focus on downside protection
Target 60-70% LTV on acquisition, never exceeding 75%. Focus on cash flow coverage and debt service resilience through market cycles.
Model downside scenarios including vacancy increases, expense overruns, and renovation delays. Every deal must cash flow from day one.
No speculative value-add. Properties must generate positive cash flow from acquisition, with upside from execution rather than appreciation assumptions.
Annual preferred return paid to investors before sponsor participation
Target internal rate of return over investment hold period
Target total return multiple on invested equity capital
Months from acquisition to stabilization and exit optionality
Target returns are not guaranteed and actual results may vary. Past performance does not guarantee future results. All investments involve risk, including loss of principal.
Proactive identification and mitigation of the risks specific to northern NJ multifamily
Northern NJ's patchwork of municipal rent ordinances — 25+ in Bergen alone, plus distinct regimes in Jersey City, Newark, and across Hudson and Essex — is an underwriting risk for outsiders and an edge for us. We track every applicable cap, vacancy decontrol rule, and capex pass-through.
See our Rent Control Matrix for the full Bergen breakdown — Essex and Hudson coverage in progress.
NJ tax assessors — especially in the wealthier northern counties — are quick to reassess on transfer. We model property tax increases as a base case, not a downside scenario.
Conservative underwriting assumes 10–25% property tax increase in year 1–2 post-acquisition, varying by municipality and purchase basis.
We underwrite to 55-65% expense ratios depending on property profile, building in buffers for utilities, insurance, maintenance, and management.
Never assume expense ratio compression. Model realistic increases in insurance, utilities, and labor costs over hold period.
Maintain adequate capital reserves for unexpected repairs, deferred maintenance surprises, and renovation cost overruns. Never distribute reserves.
Target 6-12 months operating expenses in reserves plus separate renovation contingency (typically 10-15% of renovation budget).
Learn how to invest alongside Green Oak Capital in northern NJ multifamily