Reagent Capital Fund I is being formed to acquire a portfolio of approximately 200 multi-family residential rental units across southern New Hampshire that would benefit from a consolidation of property management services and minor capital improvements. Properties will be bought individually, improved where necessary, and tenanted at fair-market rates. Our primary objectives are to: Add value through capital and operational improvements, renovating and repositioning assets as needed; Secure high-quality tenants for all units at fair-market rates, generating strong and sustainable cash flows for investors; Leverage our larger portfolio to achieve economies of scale and greater operational efficiencies; and Secure improved valuation multiples by pursuing a consistent and repeatable roll-up strategy. Fundamental to our strategy is our ability to analyze each asset through the lens of our real estate expertise. Our command of the due diligence process, ability to capitalize on local market dynamics, access to bank financing at attractive terms, and experience improving and repositioning properties provide us with an approach that is both unique and advantageous in the industry.
The 2008 crash transformed the way Americans viewed home ownership. Decreasing home values drove people to rent in unprecedented numbers, and ownership dropped steadily from its 50-year high in 2005 to less than its 1960’s low in 2015. The robust rental market and extended economic recovery drove increases in home prices in most of the primary and secondary cities around the country. As many residents were priced out of these markets, they turned to suburban areas and tertiary “feeder” cities that had not yet experienced similar escalations in asset pricing, driving up rental rates ahead of home values.
The Fund’s target markets were selected for their low current vacancy rates and increasing asking rental rates that have yet to be matched by corresponding increases in real estate values. Target assets are characterized by current or fair-market rental income streams that more than cover expenses and debt service.