Proven Track Record: Average annualized return of the S&P500 is 10.13%. Our team of sponsors has consistently delivered 20% in multifamily real estate.

In the ever-evolving landscape of investment opportunities, it's crucial to examine and compare the performance of various asset classes to make informed decisions. One such analysis pits the traditional powerhouse, the S&P 500, against the lucrative realm of multifamily real estate.

Buckle up as we delve into the numbers and explore the remarkable track record of our sponsor team, delivering a formidable 20% average annualized return in the multifamily sector. The details will expand your knowledge and broaden your horizons. Click "Read more" for the facts and figures.

The S&P 500: A Benchmark Standard

The Standard & Poor's 500 Index (S&P 500) is a market-capitalization-weighted index of the 500 leading publicly traded companies in the U.S. While it assumed its present size (and name) in 1957, the S&P actually dates back to the 1920s, becoming a composite index tracking 90 stocks in 1926. The average annualized return since its inception in 1928 through Dec. 31, 2022, is 9.81%. The average annualized return since adopting 500 stocks into the index in 1957 through Dec. 31, 2022, is 10.13%.

How Inflation Affects S&P 500 Returns

Inflation is one of the major problems for an investor hoping to recreate that 10.13% average return regularly. Adjusted for inflation, the historical average annual return is only around 6.29%. There is an additional problem posed by the question of whether that inflation-adjusted average is accurate since the adjustment is made using the inflation figures from the Consumer Price Index (CPI), the index that some analysts believe vastly understates the true inflation rate.

Multifamily Real Estate: A Hidden Gem

Enter multifamily real estate, a sector often overlooked by retail investors but rich with potential. Our team of sponsors has consistently outperformed the market, boasting an impressive 20% average annualized return (AAR). This stellar track record is not a one-time anomaly but a testament to the strategic expertise and market insight that we bring to the table.

The Enclave on Bethany was a highly leveraged asset held for 3.75 years. Bought at $11.635m and sold for $20.5m to create an Annualized Rate of Return of 103%.

The Flats at 2030 in Phoenix is another investment  that our team is proud of. By executing our carefully thought out value-add program, this property was exited at 81.8% AAR.

The Flats @ 235 is a 1965 build a value add which our team held for 17 months before exiting at an 18.3% AAR in January 2020.

Why Multifamily Real Estate?

Multifamily real estate investments offer a unique set of advantages. Unlike the inherent volatility of the stock market, multifamily properties provide a more stable and predictable income stream. The demand for rental housing remains resilient, making multifamily investments a reliable option for long-term wealth creation.

Our Sponsor Team Advantage

What sets our team apart is not just the remarkable returns but the meticulous approach to each investment. Our sponsors leverage their expertise to identify high-potential opportunities, conduct thorough due diligence, and implement strategic management practices. This hands-on approach ensures not only impressive returns but also a level of consistency that investors can rely on.

The Verdict is in: Making Informed Investment Choices

As investors navigate the complex financial landscape, understanding the performance metrics of different asset classes becomes paramount. While the S&P 500 (and stocks generally) remains a solid choice for many, our team's proven track record in multifamily real estate offers a compelling choice for portfolio diversification. With a consistent 20% average annualized return, our investment opportunities stand as a formidable contender in the quest for superior outcomes. As always, informed decision-making is the key to unlocking the full potential of your investment portfolio.