While the future of the US macro-economy is largely uncertain, it is our belief that rental housing is here to stay. Our primary demographic across markets, the Millennial generation, is highly-educated, mobile, and is the largest, most diverse population in the country, yet they are less likely to be homeowners than young adults in previous generations. They also tend to get married later than previous generations, and value mobility in the workplace. These trends underpin our investment thesis and support our decision to continue to reinvest in and build out our portfolio.
H2 Capital is committed to acquiring 10,000 residential units within the next five years, supporting neighborhoods across the country in the process. To achieve this goal, H2 Capital will follow a strategic roadmap that includes:
Identify underperforming multifamily assets in irreplaceable urban and suburban locations across the US.
Unlock asset value by instituting capital improvement programs and best management practices.
Execute the property-specific business plan from acquisistion throughout the investment life cycle of each asset, realizing full market value at sale.
“…the real work begins after closing. This is the value creation phase of the investment and where we really shine."
While H2 is active at all points in the investment life-cycle, we believe that the real work begins after closing. This is the value creation phase of the investment and where we really shine. Working hand-in-hand with the property management team to execute the business plan, our principals are intimately involved with the projects we invest in. Being tuned in to daily operations enables us to make high level decisions based on the unique challenges of each individual property, which translates to consistently higher returns for our capital partners in the long run.
H2 Target Markets
H2 underwrites multifamily opportunities in most of the continental United States, with a specific focus on the top 25-75 MSAs. We generally don’t pursue deals on the coasts to avoid the extreme competition and compressed cap rates that are often characteristic of those markets, believing instead that there is more value to be unlocked and a more compelling investment thesis in middle America.