Strata Capital Companies (“Strata”) is a commercial real estate investment firm focused on multifamily investments throughout the United States and provides a premier real estate platform for individual investors looking for wealth generation and diversification from traditional relative investments such as stocks, bonds, and cash. Strata brings an institutional mindset to investing built on relationships, a transparent thoughtful approach, utmost trust, and result oriented execution.
Strata focuses on acquiring, repositioning, and developing a diversified asset mix of income producing affordable, market rate, single-family, new construction rental and for-sale residential communities in strong markets that exhibit favorable demand and supply fundamentals.
Strata’s core principle in identifying real estate opportunities centers around a simple concept - “off-market”. This strategy enables Strata to acquire institutional quality real estate at what is considered a discount to full market value. By acquiring investments at prices below intrinsic value, Strata can create an immediate margin of safety for investors while positioning them for higher return potential.
Extract Intrinsic Value
Strata focuses on extracting intrinsic value from investment opportunities that have complexities, have been greatly mismanaged, or have a level of stress that suppresses true worth. Having an in-depth perspective (intimate knowledge) of local property market dynamics, paying attention to replacement cost (target a low-cost basis relative to market level pricing), and hands on experience, allows Strata to build (create) a business plan to maximize its investments.
Market Cycle Approach
There is opportunity for investors in all phases of real estate market cycles. Strata’s understanding of how assets perform in good and bad economic cycles enables it to identify opportunities and strategies that are appropriate to current conditions and thereby maximize return potential for investors.
Given real estate is a levered investment, financial engineering the capital structure plays an important role in an asset’s net cash flow and ultimate return. Since multifamily is a preferred asset class and debt is widely available from a variety of sources, it enjoys the availability of low cost of capital. Strata’s deep knowledge of debt capital including senior, mezzanine, preferred equity, and PACE financing helps to determine the best capital structure for its investments to generate the highest project IRRs.