Segments
Segments
ACG looks to capitalize on prevailing opportunities in various real estate market segments. The three most desirable market segments that ACG has identified and defined are as follows:
Supply Constrained Markets (SCM)
SCMs are areas with limited availability where demand far outstrips supply. This type of investment has high barriers to entry with limited investment opportunities. Investments in this segment typically include paying an initial premium, only receiving a nominal dividend, with high liquidity and potential for asset appreciation. Examples include: San Francisco, CA, Manhattan, NY, Laguna Beach, CA, and Rittenhouse Square, PA.
Domestic Emerging Markets (DEM)
DEMs are urban neighborhoods on the verge of gentrification in larger cities. These lower income areas are typically close to city centers or transportation hubs, have minimal acquisition costs, and thus greater potential for property appreciation. Our DEM development strategy currently involves acquiring “infill” properties in emerging markets believed to be transitioning into SCMs. Examples include: Philadelphia, PA, Oakland, CA, and Brooklyn, NY. There are exceptions in rural communities where downtown hubs are experiencing rapid sustainable growth and expansion, such as Bozeman, MT.
University Campus Housing (UCH)
UCH is based around large universities located in unsaturated real estate markets. UCH offers consistent rental demand leading to high occupancy rates, insulated property values from a university presence, a pre-lease rental model, and a middle class rental demographic. ACG prefers markets with secondary local industries outside the university. This insulates the local economy and helps prevent downside fluctuations in real estate prices. Examples include: Austin, TX (UT), State College, PA (PSU), Fort Collins, CO (CSU) and, Orlando, FL (UCF).
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