Covenant targets equity placements of $500,000 to $10 million for the purchase, renovation, and recapitalization of apartment assets. By focusing on this transaction size, Covenant squarely positions itself in a less competitive niche where it has the ability to react more quickly than traditional large institutional capital sources. Covenant pursues real estate investments through partnerships with proven operating companies that have significant experience managing and owning apartments. Covenant's value-added strategy focuses on 1970's and 1980's well-located apartment communities throughout the United States. Covenant partnerships reposition assets in the market through capital renovations and implementation of comprehensive marketing and management plans.

Property Type:

Multifamily

Equity Size:

$500,000 to $10 million

Leverage:

65 - 80%

Deal Types:
  •       Acquisition
  •       Partner buyout
  •       Recapitalization
  •       Renovation/rehab

Geographic Focus:

Colorado to Connecticut

Target Term:

5 to 7 years

Target Returns:

20% to 22% through a combination of current pay, preferred return, and participation in excess cash flow/appreciated value, when appropriate.

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