Acquisition Criteria

At Disrupt Equity, we focus on identifying B and C class multifamily assets with 90 units or more, in key markets including Texas, Atlanta, Jacksonville, and Memphis. Disrupt Equity will typically take a 100% ownership interest, but may also acquire assets through partnership or joint ventures.

Property Type: Multifamily
Target Markets: Texas, Georgia, Tennessee, and Florida
Sub-Markets: Houston, Dallas – Fort Worth, Austin, San Antonio, Atlanta, Jacksonville, Memphis
Property Size: 90 units or greater
Transaction Size: $4-50 million
Equity Contribution: $1,000,000 – $20,000,000
Property Class: B+ to C-
Vintage: 1960-2000
Debt: New Debt, Assumption or All Cash
Ownership Type: Outright, Partnership, Joint Venture

Investment Strategies

Value-Add:
Our core focus are value-add opportunities. These assets are typically well occupied at takeover but rent below market or have a clear value-add play, such as implementing utility bill-back. By implementing revenue-generators, curing deferred maintenance, adding and improving amenities, and taking steps to improve property appearance, we can usually continue to increase rents and generate substantial cash-flow for investors. A typical value-add play is $5,000-$9,000/unit in rehab budget.
Stabilized:
These assets are typically well maintained and have high occupancy at takeover. These assets typically provide strong cash-flow from day 1, and have an opportunity to increase value through moderate interior upgrades. The rehab budget is typically on $1,000-$3000/unit.
Distressed:
These assets tend to have lots of deferred maintenance and suffer from high vacancy. With a strong rehab budget, these asset can typically be turned around and brought back to stabilization in 12-24 months, afterwards providing significant cash-flow or value for investors. The typical rehab budget is $6,000 to $15,000+ per unit.