In 2015, we received our first direct investment opportunity in New York's RE market. Our first thought was to replicate the successful model we adopted in Brazil: investing in exceptionally well-located retail units. Stores in locations with a lot of foot traffic, such as Times Square, sounded perfect - the safety of an almost certain ability to replace tenants, if needed, in a unique location. However, after studying the city and the risks and particularities of the US retail market, we decided to pursue a different focus. We established a relationship with over 100 local developers and sponsors and dove into the market until we found our way: investing in Multi-family properties with value-add opportunities through growth in rental income.
In three years we invested in fourteen deals in the city: two developments and twelve existing rental buildings. Our focus is to invest in Multi-family buildings, where agreements and renovations bring opportunities to add value to the monthly rental income and, subsequently, to the property itself, preparing it for a future sale.
Using our experience in the execution of over 200 developments and thousands of negotiations, we thoroughly analyzed more than 500 Real Estate deals in New York City. Ever since we arrived to the city, we studied the local construction patterns deeply and managed to add a series of enhancements to the projects that had been adopted by us in Brazil throughout the last decades. Our goal is to expand our base of local partners. Today we have solid relationships with four excellent New York companies.