AP focuses on growth markets on the East coast. We seek on and off-market listings, bank-owned, and non-performing distressed multi-family and hospitality assets to achieve attractive risk-adjusted returns for our investors.
Benefits of real estate
For decades, institutional investors have diversified their portfolios with commercial real estate.
Affect Property empowers a broader community of investors to access this cornerstone asset class and complement their portfolios.
The Case for Real Estate
High-quality private core commercial real estate has historically outperformed most other asset classes, delivering a 7.7% annualized total return in the 15 years to the end of the year. As shown in the graph below.
Income is a major attraction of commercial real estate as an asset class. Historically, 70% of the total returns from commercial real estate have come in the form of income rather than capital.
Real estate income over the last 25 years has increased at nearly the same average annual rate as inflation (2.92% vs. 2.31%).
Modern portfolio theory suggests that the most effective way to maximize returns while at the same time minimizing risk is to add uncorrelated assets.
1. New York & Metro Area
2. Boston & Metro Area
3. Philadelphia, PA
4. Baltimore, MD
Multifamily & Hospitality
Our Business Model
REFURBISH OR RETROFIT TO RE-LET
We acquire an asset if it has the potential to meet the evolving needs of our customers and communities, can be acquired at the right price, and is likely to create financial value for us.
Our Investment Policy defines the standards we set for acquisitions and guides us when making buying decisions. We may acquire a poorly performing asset if we see an opportunity to improve performance through investment and better management.
We develop to create space that will appeal to customers, enhance the area, and create financial value for us. This activity creates job opportunities during construction and operation.
We design for safety, wellbeing, efficiency, and productivity. And we embed our sustainability principles in the design and delivery process.
We work with customers, communities, and partners to ensure our buildings operate efficiently and help increase local prosperity.
We redesign and refurbish space to make it more attractive, useful, and valued. Thinking about sustainability helps protect buildings from external risks such as price volatility, changing regulation, supply issues, and premature obsolescence.
We sell an asset when we see an opportunity to deploy capital more effectively elsewhere.
Through our investment and activity, the building we sell should perform at a higher level than the building we bought - financially, physically, and socially. This should make it more valuable. We always aim to build a positive legacy, leaving a place in a better state than when we arrived.
As a vertically integrated company, we leverage our extensive experience across our design, build, and property divisions to create a cohesive project team that works in tandem with our external supply chain to orchestrate successful project delivery.
boutique interior design
and branding studio
specializing in narrative
driven spaces and
contracting, and design
and build services.
seeks out value-add
specific asset types and
geography to deliver
sustainable returns to
division oversees the
all Affect Investment
Our vertically integrated delivery model provides cost, program and quality certainty to our investments, safeguarding investors.
The traditional design – bid – build model is broken, fraught with delays, and cost overruns.
Early subcontractor and specialist trades involved to de-risk construction costs and design risks.
Internal procurement team with extensive procurement knowledge of finished materials and FFE to deliver savings.
We can overlap the design and build processes to continually budget and procure long-lead items to deliver savings into the program and deliver greater cost certainty.
Trusted and reliable supply chain partners with safety and environmental track records, who have been pre-qualified to ensure they are financially stable as well as able to provide resources.
and distressed assets.
branding teams develop a
after careful market analysis,
to reposition the asset with
a unique offering.
the offering to
create a unique, inviting
guest experience while
also improving the
re-launch with a unique
increased efficiency and
opportunities to enhance
the profitability and
optimized market position
and if not, determine
changes or capital
reinvestment to further
LOW LEVERAGE (30%-50%)
– Lower risk
– Well-leased, stablized assets
– Most return from income
– Typical low leverage
MODERATE LEVERAGE (50%-75%)
- Medium risk
- Assets in need of renovation or
- Niche property types
- Return from income and
- Typical moderate leverage
HIGH LEVERAGE (75+%)
- Higher risk
- Assets with significant vacancy
- Return mostly from capital
- Typical higher leverage