Two Bridges believes that well-located, cash-flowing multifamily residential rental property is an attractive investment asset in nearly all economic conditions. Multifamily real estate is well understood as an inflation hedge in boom years. And the Great Recession showed that demand for rental apartments can increase during economic downturns, helping insulate multifamily real estate from the downward pressures acting on other categories of real estate during a recession.
Two Bridges follows a conservative investment strategy of acquiring stabilized, cash-flowing, but under-performing multifamily properties that allow us to add value through enhanced operations and non-structural improvements. At each newly acquired property, we typically undertake a program of capital improvements and install new professional property managers with a track record of achieving and maintaining high occupancy and profitability.
Two Bridges seeks to maximize investment returns by focusing on economically vibrant secondary and tertiary markets, which are typically overlooked by institutional investors. These markets offer more attractive investment yields at purchase than the primary markets that receive the most attention from larger players. We also focus on deal sizes that are too small to meet the investment criteria of institutional investors but are too large for most local investors. Additionally, we also seek out multifamily properties in especially attractive situations, such as areas with barriers to entry like restrictive zoning that precludes new construction of multifamily residences.
Finally, Two Bridges believes that markets experiencing strong population growth will consistently exhibit healthy demand for rental properties over time. We thus focus on the Southeastern United States, one of the fastest growing regions in the country over the last several decades.