Investment Strategy

ASSET SELECTION STRATEGY

Kentaurus Capital focuses on Class C multi-family assets built between 1960 and 1980.

We believe that:

• There is a fixed supply of Class C apartments, and with a tremendous gap in rent between Class C and Class B rents, we see our portfolio as insulated from many economic risks.
• Construction standards improved into the 1960’s resulting in a product type that is simple, yet dependable, even 60+ years later.
• Ownership of these assets has historically been legacy “Mom & Pop” operators that maintain their properties to a high standard but manage for occupancy resulting in below market rents.
• Smaller owners are more likely to entertain off-market offers, than larger operators. Kentaurus Capital has a broad deal referral network and routinely acquires assets that are not seen by our competitors.
• The architecture of this era is currently seen as out of favor, resulting in reduced buyer interest, however renters choose where to live based on location and unit finish, which is why we acquire in strategic locations and focus on improving unit finishes.

MANAGEMENT STRATEGY

• EIG Property Management, an affiliate of Kentaurus Capital, implements a robust management system where properties are broken into portfolios that are managed remotely by our management team from our North Loop Office.
• Routine management practices such as lease signing, rent collection and resident communications are handled through processes that can be easily repeated and scaled.
• Maintenance staff are trained on the nuances of our niche product type to maximize efficiency.