June 5, 2018 Multifamily Equity Capital Turns Away From Ground-Up Builds

Dekel Strategic Investors is trading ground-up multifamily deals, where there may be some softness in rental rate growth, for value-add and core-plus strategies. 

Dekel Strategic Investors, a division of Dekel Capital, is shifting its multifamily equity capital strategy to focus on value-add and core-plus deals. The firm is moving away from ground-up development, which it says no longer offers an attractive risk-reward profile.

The new strategy will continue to make small balance equity investments ranging in size from $5 million to $15 million using 65% leverage. We sat down with Shlomi Ronen, managing principal at Dekel Capital to talk about the strategic shift and what he is looking for in a deal. Read the rest of the story on Globe St.