Infinity Real Estate Strategies
Infinity believes that, when correctly implemented, private real estate can be a great tool to help investors add yield, return and diversification to an alternative investment portfolio.
Through its affiliates, Infinity Real Estate Advisors, LLC and Infinity Real Estate Advisors II, LLC (“IREA”), Infinity has launched a series of funds that focus on the acquisition, renovation, management and preservation of affordable multi-family assets.
IREA targets both Project-based Section 8 (PBS8) and market rate affordable multi-family assets. Infinity believes these funds offer a unique investment opportunity for high net-worth individuals, investment advisors, family offices, and institutional investors seeking predictable returns in an asset class that will have less relative risk to other multi-family or real estate asset classes.
Our Approach
IREA is a fully-integrated platform built to finance, rehabilitate, and stabilize affordable multi-family assets. Our team has decades of experience working within the affordable housing space. In addition to standard real estate fundamentals, our team has developed a deep skill set in acquiring and owning affordable housing which we believe requires a true partnership with federal, state, and local government agencies.
The IREA team has partnered with numerous HUD offices and dozens of local housing authorities to solve some of the challenges that come from affordable housing and create situations that benefit not only the investors but the tenants and communities as well.
IREA has worked extensively with the Boston, Atlanta, Fort Worth, Jacksonville, Kansas City, and New Orleans HUD offices. These critical relationships allow the investment team to collaborate and try to improve issues related to tenant health and safety, tax abatement, and overall public relations that can be challenges that typical real estate investors can find difficult to overcome.
We continue to believe that there is an overwhelming shortage of affordable housing and that available data reinforces our belief that the lack of affordable housing will be an issue into the foreseeable future.
IREA currently manages three value-add private real estate funds. The primary strategy of these funds is to acquire affordable multi-family assets which are either mismanaged, capital neglected, and/or provide an opportunity to implement IREA’s rent arbitrage strategy.
IREA targets well-occupied, structurally stabilized communities in stable and growing cities. Properties may have up to a 2-year stabilization period and a 5-year maximum investment horizon.
IREA is currently managing three funds: Infinity RE Impact Fund, LLC (“IREI I”), which acquired approximately $100MM of affordable housing assets, Infinity RE Impact II, LLC (“IREI II”), which acquired approximately $200MM of affordable housing assets, and Infinity RE Impact III, LP (“IREI III”) which was launched in Jan 2022 and will acquire approximately $400MM of assets.
Key Features of the affordable housing strategy
Purchase a diversified portfolio of between 12 to 30 affordable housing properties, with no more than 30% of investor equity invested in naturally occurring affordable housing (“NOAH”) properties.
Purchase Price ranging from $2M to $20M for a single property.
No more than $7.5M of investor equity placed in a single property.
Value creation through rent arbitrage, capital improvements, and expense reduction.
Current pay of 8.00%, paid quarterly, subject to available cash flow
Barriers to Entry
Sponsorship must be pre-approved and vetted by the US government before acquiring a subsidized property. The number of competitors in our asset class is less then conventional multifamily.PBS8 Rent Arbitrage
Unlike conventional multifamily, subsidized housing rent increases are pre-negotiated and agreed to with HUD prior to closing on the asset. There is no rental rate risk or lease up risk.Relationships
Acquiring subsidized housing requires a continued relationship with local housing authorities, regional HUD offices, and HUD leadership in Washington, D.C..Track Record
The IREI team has successfully executed on its prior investments. Similar asset profile and returns will be targeted within the fund.Led by Greg Jones and Carter Sechrest, IREA has extensive experience in all facets of commercial real estate, including acquisitions, construction management, asset management, structured finance capital markets and most importantly, affordable housing. IREA will leverage this versatile skill set to capitalize on opportunities too complex for most conventional multifamily investors.
Our Properties
Current Portfolio
FUND I
IREI I successfully acquired 12 apartment communities in 2020. All communities are Project-Based, Section 8 and total 1,257 units. The communities are located in North Carolina, South Carolina, Missouri, Illinois, Nebraska, and Kansas. IREA has contracted with Ambling Management Company, LLC to manage the North and South Carolina communities; Seldin Company for Nebraska, Missouri and Kansas; and Ludwig Management for the Illinois asset. All rehabs have been overseen by Atlanta Financial Group, LLC (“AFG”).
IREI I has fully called all $17,072,055 of committed fund equity. Commercial Property Finance (CPF), a subsidiary of Walker & Dunlop, LLC and Prudential Affordable Mortgage Company, LLC (PRU) provided bridge mortgage loans for nine of the acquisitions. Walker & Dunlop and PRU facilitated Freddie Mac and Fannie Mae agency loans. The final acquisition, St. James, was acquired with cash and is in the process of procuring debt.
The total capitalization of the IREI I portfolio is approximately $85,974,000.
FUND II
IREI II successfully acquired 19 apartment communities through January 2022. All but one acquired communities are Project-Based, Section 8 and total 2,354 units. The communities are located in Kansas, Missouri, Indiana, Illinois, Alabama, Nebraska, Connecticut, Oklahoma, Louisiana, Iowa, Kentucky, and Georgia. IREA has contracted with Ambling Management Company, LLC, Seldin Company, and Ludwig Management to provide property management services. All rehabs are being overseen by Atlanta Financial Group, LLC (“AFG”).
IREI II has fully called and deployed all $61,341,280 of committed equity. Commercial Property Finance (CPF), a subsidiary of Walker & Dunlop, LLC and Berkadia Affordable Housing provided bridge mortgage loans for eight of the acquisitions. Prudential Affordable Mortgage Company, LLC (PRU), Walker & Dunlop, LLC and Berkadia Affordable Housing facilitated Freddie Mac and Fannie Mae agency loans.
The total capitalization of the IREI II portfolio is approximately $213,250,000.
FUND III
IREI III purchased 16 apartment communities in 2022. All but one acquired communities are Project-Based, Section 8 and total 1,844 units. The communities are located in Missouri, Georgia, and South Carolina. IREA has contracted with Ambling Management Company LLC, Sansone Management LLC, and the Housing Development Corp. to provide property management services. All rehabs are being overseen by Atlanta Financial Group, LLC (“AFG”).
IREI III has called and deployed $45,000,000 of $100,000,000 in committed equity. Berkadia Affordable Housing provided bridge mortgage loans for 14 of the acquisitions. Walker Dunlop sourced Freddie Mac mortgages for the remaining two properties.
The total capitalization of the IREI III portfolio is approximately $172,000,000.
Map Key
Total Capitalization Across All Assets – $469MM
Total Number of Properties Owned – 38
Total Number of Properties Sold – 11
Total Number of Units Under Management – 4,887