The Pathway to Cash flow

Threshold Capital is a real estate investment firm specializing in the acquisition, renovation, and operating of multifamily communities. Targeted opportunities are value-add in nature, typically underperforming due to inferior physical condition, deficient asset management or in most instances, a combination of both. Size parameters are typically 100-500 units, with geographical targets within stable growth markets throughout the South and Southeastern United States. While major metropolitan areas are certainly a focus, we have had tremendous success in secondary and tertiary markets, where there is more prevalence of smaller, unsophisticated owners and operators.  To date, Threshold has invested in over 14,500 units and the portfolio currently comprises approximately 9,000 units, with an estimated market value of $800 Million.    

Threshold has an impressive track record of producing excellent cash flow and return of capital, through revitalizing underserved properties.  Our expertise in implementing prudent value creation strategies and diligently managing operations is a proven formula for driving property performance and most importantly creating and preserving equity value.  Fundamental to our overall strategy is the concept of competitive advantage.  Our ability to create a competitive edge for our properties has been very instrumental in consistently outperforming the competition.

During 2008 – 2011, the real estate industry experienced one of the most disruptive cycles of this generation, with many owners failing due to overly aggressive acquisition pricing, unrealistic forecasting assumptions, poor capital planning, and lack of on-site expertise. Threshold, using acquisition discipline and an entrepreneurial operating approach, stayed on course and delivered outstanding returns throughout a very difficult and prolonged period.  

The economy and multifamily sector has been in a period of growth for some time.  Debt financing has been very attractive, allowing us to refinance numerous properties and capitalize on our property valuation increases.  Now the economy is experiencing a severe downturn and the multifamily sector will eventually bear the brunt of massive job losses.  We are at the doorstep of another opportunistic purchasing opportunity.     

There is money to be made.