URL:
Location:
Pittsburgh, Pennsylvania
Niche:
Multi-Family
Prior::
CrowdStreet

Overall:

Communication/Reporting:

Track Record/Performance:

Sponsor Fees:

Alpha Capital Partners was organized to acquire, develop, and manage institutional quality multifamily apartment properties in US growth markets with strong demographic and employment trends with constrained supply.  ART is focused on delivering strong risk-adjusted returns.

ACP is currently focused on strategic markets in certain growth US MSAs (see list below) where we believe we can continue to deliver very attractive risk-adjusted return to investors.  ART’s near term strategy is to acquire, develop, and manage Class A & B garden style and mid-rise multifamily properties within a 50-mile radius of these anchor MSA.

ACP’s strategy revolves around acquiring Class A & B (“small” 40 to 200-unit garden style and mid-rise) multifamily properties with strong CAP rates and sustainable cash flow growth. ART is focused on building a strong portfolio of well-located garden styles and mid-rise multifamily asset within demand growth, job growth, and supply constrained secondary/tertiary markets to generate very attractive risk adjusted returns. Continued FFO growth from these properties will be realized through rent growth and operating efficiency.

ACP is pioneering a very robust strategy around “small multi-family properties (40-200 units).” ART is a market leader in small balance real estate (SBRE)deploying technology and analytics efficiently to drive operational efficiencies and growth. We believe there is considerable value in this fragmented multifamily space.  Managed properly and scaled efficiently with technology we see this unique opportunity generating very attractive returns.  Our investment strategy is to execute a disciplined acquisition strategy over the next five years, behind very strong momentum in the multifamily REIT space. The macroeconomic outlook for renters of apartments is a favorable environment.  ART’s growth strategy is to expand into the strategic markets listed below, build a strong portfolio of garden style and mid-rise multifamily units, with the potential exit through a sale or public market listing during this strong growth period.

Due Diligence & Discussions

Share your experience. Rate and comment!

Yanpeng Guo

Oct 11, 2018

I invested in two student housing deals with Jide, and they drove the occupancy all the way south from 95% down to around 80%.  I only speak based on real numbers.

They have a couple properties in College Station, TX which are all under stress due to oversupply issues there.  I'm fine with the oversupply, that's kind of my fault without in-depth DD.  However, they had issues with one property where they had to dispute with the lender on how much tax escrow they need to pay.  That's OK with me too, who doesn't have some hiccups?  However, I lost all my patience after full 3 months, they still don't have an answer.  Every time I call, the reply was their accountant is working diligently on it with the lender, will have an answer next week, but to no avail.  As of the time of this review, the distribution is suspended due to low occupancy at 82%.  The asset management was “confident” they can improve the performance by putting in professionals instead of students, but within entire Q3, they can’t move even one more unit in leasing.

Another property is student housing project in Mattoon IL, south of UIUC.  The distribution has been suspended for 6 months.  This property is on the front page of their Residential Fund IV fund raising material, where they bragged about how they converted a 10-month lease into 12-month.  What they didn’t tell the investors is that the occupancy dropped to below 80%, as apparently not everyone likes it.  And of course, they blame it on lower school enrollment.  And did I mention they suffered flash flood TWICE in last 6 months?  The first time they didn’t even have insurance.  Now I am waiting to see how much insurance they will pay next year and how it will affect the expense.

In general, this is a sponsor you should avoid at all cost.  They grew very rapidly over the last 2-3 years to scale up, but lack of experience and knowledge of local market is a serious concern.  Managing various properties across regions appear to be very difficult.

Paul Chung

Aug 02, 2018

Update:

I would stay away from this sponsor for now. I question their competence at this point. They're beginning to miss distributions on a core plus, master leased property. 

They were also misleading on one of their PPMs about their plans. They were pursuing a master lease with a local healthcare provider but abandoned that plan upon acquiring. Allegedly it was in the best interest of the investors but until I see results in the form of increased distributions, extremely disappointing. 

--end update

They communicate well and answer questions in a relatively timely fashion.

I'm invested in Vitae and 266 Lofts. My gripe with them is that they distribute only the preferred amount and nothing more. Their standard PPMs state they can distribute anything above the preferred return at their discretion, which is atypical language. 

Otherwise, I believe they are able to source excellent deals on a risk-adjusted basis.

David hutson

May 08, 2018

I am in the GP fund and Front Street Properties since I like Memphis.  I visited the Memphis properties last year and looked around.  Everything was looking good at the time.

I understand they are newer but I really like them.  They communicate very well and I have been receiving consistent payments, on time.  They just sent out an email stating we would accrue an upcoming payment but the explained it and let me know in advance, which I liked.

tom Thompson

Oct 11, 2017

I am in there GP fund and Healthcare NNN Fund great communication, CEO is very accessible,  distributions come on time...so no issues. For all the negatives i hear with Alpha(all coming from ppl who are not LP's)  they sure find great deals and get them funded. If you had an issue with Alpha and addressed it with them and the issue was resolved then it ceases to be a issue. All sponsors are good... until their not!

Alpha is a good sponsor. 

Richard A

Jun 03, 2017

I am in several of Alpha deals, but not their GP deal that some have commented on.  All properties have been paying their preferred distributions in a timely manner, and I have always been able to communicate with their leaders.  I will continue to invest with them as they bring more opportunities either to Crowdstreet or directly.

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Rated 2.9/5 based on 16 customer reviews

Alpha Capital Partners was organized to acquire, develop, and manage institutional quality multifamily apartment properties in US growth markets with strong demographic and employment trends with constrained supply.  ART is focused on delivering strong risk-adjusted returns.

ACP is currently focused on strategic markets in certain growth US MSAs (see list below) where we believe we can continue to deliver very attractive risk-adjusted return to investors.  ART’s near term strategy is to acquire, develop, and manage Class A & B garden style and mid-rise multifamily properties within a 50-mile radius of these anchor MSA.

ACP’s strategy revolves around acquiring Class A & B (“small” 40 to 200-unit garden style and mid-rise) multifamily properties with strong CAP rates and sustainable cash flow growth. ART is focused on building a strong portfolio of well-located garden styles and mid-rise multifamily asset within demand growth, job growth, and supply constrained secondary/tertiary markets to generate very attractive risk adjusted returns. Continued FFO growth from these properties will be realized through rent growth and operating efficiency.

ACP is pioneering a very robust strategy around “small multi-family properties (40-200 units).” ART is a market leader in small balance real estate (SBRE)deploying technology and analytics efficiently to drive operational efficiencies and growth. We believe there is considerable value in this fragmented multifamily space.  Managed properly and scaled efficiently with technology we see this unique opportunity generating very attractive returns.  Our investment strategy is to execute a disciplined acquisition strategy over the next five years, behind very strong momentum in the multifamily REIT space. The macroeconomic outlook for renters of apartments is a favorable environment.  ART’s growth strategy is to expand into the strategic markets listed below, build a strong portfolio of garden style and mid-rise multifamily units, with the potential exit through a sale or public market listing during this strong growth period.