A Multifamily Investment Firm
Alpine Real Estate Group (Alpine) is a multifamily investment firm that focuses on acquiring apartment complexes and mobile home communities that have been neglected, mismanaged, and undervalued in major MSA’s throughout the Southeast.
After being involved in hundreds of real estate transactions focused on single-family homes we were looking at what our best option to scale was. Our initial conversations centered around how many houses or mobile homes we would need to buy a year to reach our goals. However, we were challenged in the summer of 2019 to buy multifamily properties because of economies of scale. As we learned about the opportunities around mobile home parks and apartment communities we decided to focus our efforts on completing one or two deals a year instead of trying to close on 20 new rental properties.
Economies of scale really come into play with multifamily, especially when it comes to being able to improve a properties’ value through increasing its cap rate. Raising rents by $25 or $50 dollars on a multifamily property can increase its value by hundreds of thousands of dollars or more depending on how many doors. Forced appreciation on that scale is not possible when it comes to single-family homes.