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Liberty Creek focuses on the multifamily segment of commercial real estate. Purchasing stabilized assets for consistent income and value added projects for increased growth. Apartments have shown to be a great investment to produce income and with tax benefits through depreciation. Assets the Company selects are also in mobile home parks, RV properties and residential rental portfolios.

The Company selects properties based on current and potential income for the Funds and Syndications. Assets are purchased in selected recovered and emerging markets.

How Apartments are Classified

Class A

  • Less than 10 years old
  • New, high-end
  • Luxury

Class B

  • 11-20 years old
  • Good quality but older
  • Generally in suburban neighborhoods

Class C

  • 21+ years old
  • Older, run down, poor operation
  • Generally in lower income neighborhood

Apartment Market Drivers

“GEN Y” the Millennials – The Rental Generation

  • Medium income $39,000
  • $33,000 in student loans
  • 40% are overwhelmed in debt
  • Want mobility
  • Average 5 jobs before they are 30
  • 62% will change jobs in the next two years
  • 83% are willing to relocate for a new job
  • Like the freedom to go where they want to go
  • Apartments are generally nearer to the “action and commerce”
  • Prefer shorter work commutes, 20 minutes or less

Inventory

  • 9,560,000 units built between 1970 to 1990
    • Undervalued
    • Most in serious need of updating
    • Cannot be built today for the purchase price
      • $20,000-$50,000 per unit
    • Cap rates and income at very attractive levels
  • New apartments are expensive to build, therefore their rents are high
    • $85,000 -$110,000 per unit average construction cost
    • Not very good investments, mainly for institutions
  • National vacancy rate continues to fall currently 5.5%

Undervalued Commercial Real Estate

Anything in real estate that is above a 4 unit residential property is classified as Commercial. Liberty Creek participates in selected segments of this market:

  • Multifamily
    • Bank Owned REO – Foreclosed and held by the Bank
    • Non Performing Multifamily – Mortgage Note in non-compliance
    • Underperforming Multifamily
      • Mismanaged and not occupied properly
      • In disrepair and need renovation to bring to current market value
      • In default
      • Foreclosed and under occupied
  • Mobile Home parks
  • RV Parks
  • Selected Hotel and Resort

The Commercial Market is much larger than the Residential business segment, totaling over $2.5 Trillion of assets in some form of distress.

WOUNDED WARRIORS
PROUD SUPPORTERS OF OUR TROOPS