GNR’s management companies are unique
They specialize in single-family residences (SFR), unlike other traditional companies that usually focus on large multifamily properties. At today’s market, multi-family usually trades at anything between 5% -6.5% cap rate, while SFRs developed by GNR reach over 11%.
GNR’s single-to-multi strategy relies on its ability to screen the best high yielding SFRs in the best strategic geographic locations one by one, manage multi construction sites, and upon completion - rent out the units and manage the ongoing operation and obtain financing.
GNR’s unique S-To-M strategy is clearly its business advantage over its competitors, as it does not exist in the SFR market.
It provides the Group with the ability to acquire and operate at prices significantly lower than their value, according to bank appraisals.
Based on those appraisal reports, GNR obtains competitive financing at up to 75% loan to value, which demonstrates the immediate value added to the properties, and as a result, the leveraged properties yield 15-20% (and more) annually over the years, generating strong cash flow.
In the core of this strategy lays the ability to acquire, renovate, populate and manage clusters of hundreds of residential units comprised of single assets, creating a dense multi-location ‘multi family’.
These assets usually reflect the high-yieldingunfulfilled potential created by the latest real estate crisis in the United States (AKA as the sub-prime crises) – in a market that still suffers from a lack of opportunity in the multi-family sector.
These kinds of assets, which have been accumulated by GNR Group over the last several years are already stabilized and occupied by tenants who receive subsidized housing support from the federal government. The fixed rent is typically above market and produce double-digit yields which support the GNR Group’s unique ‘Single-to-Multi’ business model.
The S-To-M portfolio is built to maximize its attractiveness to institutional investment market as “the next big thing” in the multi-family housing and therefore at a cap rate that will significantly increase its value.