The 5 Essentials of a Successful Apartment Acquisition

“There’s a lot of demand for multifamily investments and a lot of equity chasing it,” says Jay Madary, president and CEO of JVM Realty Corp., an Oak Brook, Ill.–based owner–operator that acquires and manages Class A and B apartment communities in secondary markets in the Midwest. “We’re also seeing that lenders are active. Financing is plentiful for the types of communities we target.” In such an environment, it might be tempting for apartment companies to plunge headfirst into the buying process. But multifamily veterans say there are some fundamental components of acquisition preparation and execution that all buyers should heed. Five of the most notable are outlined below. 1. Do Your Homework According to multifamily executives, you can’t do too much due diligence when evaluating a community before agreeing to acquire it.

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