Why Multifamily?

We have purchased this commercial real estate asset class with our investor groups since the early 1980s… it’s what we know best. We believe in the strength of the multifamily market and are well versed in its nuances.

We focus on apartments because we’re convinced there is no safer real estate investment:

  • historically, multifamily has been the most stable asset class
  • on a risk-adjusted basis, it has traditionally delivered the highest returns of any real estate asset class
  • when stabilized, apartment ownership provides predictability in income and expense operations
  • multifamily properties provide lower vacancy risk than many other property types, such as office or retail
  • apartment properties provide a superior inflation hedge, when leveraged appropriately
  • apartment properties frequently offer upside in rental income and repositioning opportunities
  • multifamily investments are also counter-cyclical, as housing is a necessity regardless of macroeconomic conditions
  • home ownership affordability is still a stretch for many people, particularly in California and major metropolitan cities
  • apartment investments offer better liquidity than other property types, because of mainstream investor comfort with this real estate class
  • for several decades to come, echo boomers (said to number about 80 million), will generate huge demand for apartments
  • aging baby boomers are beginning to trade single-family homes for apartment living
  • demographic shifts in the U.S. population are favorable for apartment ownership
  • population growth will outpace the supply of new units
  • demand from pension funds, REIT’s, limited partnerships and institutional investors will continue to drive up the price of apartments for the foreseeable future

Investment Strategy

Montgomery Partners specializes in acquiring value-add apartment investments in targeted markets. The majority of these investments are solid Class B properties which demonstrate a level of potential profit to be achieved through renovations and focused asset management. The firm selects, analyzes, and negotiates investments on behalf of our clients, and represents investors in all aspects of the acquisition and ownership process, including securing conservative financing. We select and screen potential investments using a rigorous set of criteria and our own proprietary underwriting model, based on the operating history of the property, its local market, and the experience gained from our previous and current portfolios in those markets.

Focus on Location

We operate in well-defined locations, and as a result, we have direct knowledge of our targeted investment markets. Criteria includes strong employment drivers, barriers to entry, rental supply/demand balance, fundamentals, and overall performance.

Unlock Embedded Value

We believe it is critical both to buy correctly and to maximize value after we acquire an asset. In order to achieve these goals, our management affiliate, Montgomery Capital Management (MCM), transforms the asset’s overall attractiveness by enhancing curb appeal, improving interior renovations upon unit turnover, upgrading tenant amenities, and rigorously managing the property, thereby increasing its saleability and liquidity.

Strong Management Team

Montgomery Partners and MCM are a team of experienced real estate professionals having backgrounds in acquisition, finance, asset management, property management, brokerage, and construction, and all work together to carry out property-specific business plans.

Significant Access to Deal Flow

A cornerstone of our strategy is acquiring properties not offered on the open market. The vast majority of the transactions we pursue are marketed quietly, rather than openly listed. We have established long-term relationships with principals and the brokerage community in all the markets in which we seek to acquire assets. We have developed these relationships over decades of transaction history, and this approach provides unique access to product. Simply put, sellers and brokers work with us because we are credible and active closers.