The Silver Coast Group began seeking value-add multifamily opportunities in 2016 as a complementary addition to our foundational opportunistic strategy. It expands the reach of SCG’s real estate platform through investments that have the potential to provide stable income and attractive risk-adjusted returns, but do not have distress or a large amount of vacancy. The value-add strategy seeks to achieve superior risk-adjusted returns through investments in high-quality real estate assets with an emphasis on income and long-term growth.
Consistent with SCG’s investment philosophy, the value-add strategy emphasizes the importance of market inefficiency, consistency and controlling risk. The team utilizes its existing infrastructure and relationships to acquire value-add real estate investments. The strategy mitigates downside risk by identifying price discounts relative to intrinsic value and replacement cost, diversifying positions by property type and geography, and conservatively managing leverage.