FireStar Group, LLC - MULTI-FAMILY ACQUISITIONS
ACQUISITION CRITERIA
 
FireStar Group, LLC is actively seeking stabilized multi-family and storage properties in emerging markets throughout the United States.  Our acquisition criteria are typically based upon the following:
 
General Criteria
  • Potential high yield income streams or monthly cash flow
  • Location of property in a growth area or revitalization neighborhood with population and employment numbers heading up
  • Cap Rates - Prefer rates above 8% but will look at various rates depending on cash requirements, appreciation potential, and the actual property itself.
  • Transaction size - $1M - $20M
  • Debt coverage ratios of 125% or higher
  • Price should average 20% below replacement cost
  • Cash Equity - "All Cash" or "Cash to existing debt"
  • Value-add opportunities sought
 
Property Criteria
  • Most often multi-family residential or self-storage
  • Generally, B and C class property types and locations
  • Minimum size, generally 50+ units or more
  • Age -  Preference is 1979 and newer, but will consider all age properties
  • Roofs - prefer pitched construction but not required
  • Minimum occupancy 85% - lower might be considered if significant property enhancement opportunities are present
  • Value add opportunities present
  • Minor amounts of deferred maintenance will be considered
  • Prefer individually metered units but not required
  • Prefer stabilized properties but will consider others is well located and significant value-add opportunities are present