Citymark invests in individual institutional quality apartments averaging 300 units per property. Investments include both the acquisition of existing properties and the construction of new apartments. This balanced investment approach is designed to provide cash flows to investors earlier in the investment period, as well as long-term capital appreciation as newly constructed properties are completed and leased.
Alignment of Interest
At the heart of Citymark Capital’s strategy for each investment is achieving the alignment of the interests of the firm and the third party real estate operating company in which the firm invests. Citymark requires the third party real estate operating partner to contribute equity into each project and all parties are rewarded based on success of the project. Investments are structured so that the firm is the majority investor in individual real estate development projects and portfolio acquisitions. Citymark retains control and decision-making rights on major decisions affecting each investment.
Single Asset Investments and Portfolio Acquisitions
Citymark utilizes the real estate experience and long-term relationships of Mr. Walsh and other senior managers of the firm to source and acquire institutional quality single asset multi-family investments and multi-family property portfolios.
Citymark believes there are attractive opportunities to pursue a development strategy, particularly in the top major metropolitan markets in the United States. Citymark capitalizes on a significant number of existing direct relationships with “best in class” real estate developers who successfully and consistently execute value creation strategies in attractive US markets. Citymark requires the development partner to invest capital alongside the firm to properly align its interest with the firm and that the development partner will not receive any incentive compensation until specified levels of returns are achieved.
Citymark acquires investments in located in top US markets where strong demand for existing and new properties is driven by millennial household formation and a general shift to urban living.
Citymark seeks equity investments in the following types of properties:
- Market rate rents
- Luxury classification
- Development projects ranging from $10 million to $125 million in total value
- Value-add or stabilized properties which may or may not require significant rehabilitation
Citymark structures its investments so that it is the majority investor in individual real estate development projects and portfolio acquisitions. Citymark capitalizes on the operating expertise of the real estate companies in which it invests while retaining control and decision-making rights on major decisions.