Invigorating investors about what we do with knowledge and understanding of opportunities we deem worthy of pursuit—is what invigorates us. It is crucial to know that there is an inherent risk to any investment opportunity; hence we want you to understand how and why we vet a property and our decision-making process to gauge a greenlight on an Invigorate-worthy investment opportunity.
Invigorate focuses on both traditional multi-family value-add housing as well as choice opportunities for "all-inclusive housing," a.k.a. "furnished housing," with an eye toward trends and movements in co-housing. Depending on a number of criteria pertaining to the property, location, and demo, Invigorate will value-add to a traditional property or convert it into "all-in / furnished" housing.
Why traditional multi-family value-add housing? This asset category proves time and again to be the safest and most conservative approach to real estate investment. We take existing poorly managed and maintained properties and through hard work and controlled efficiency, renovate, add value, and increase the rate of appreciation. With over approximately 28 properties, 280 units, and 210,000 sq ft of experience--this class of expertise is one of our specialties. Depending on location and other factors, we elect to produce a traditional rent-mode or convert properties to "all-inclusive" housing. Currently, Invigorate Soundside has three properties in the traditional rent-mode, with The Cardigan as our flagship "all-inclusive" property.
Why "all-inclusive" or "furnished" housing? Invigorate believes in focusing on the under-served modestly priced, furnished housing in greater Seattle. Studies as of September, 2016, expose the dire need for affordable housing with comparative data defining high-end housing construction at 65.4% to low-end housing construction at 7.4%. Hence, we are one of the very few real estate development firms addressing this severe problem with proof-positive solutions in the marketplace.
In addition to providing reasonably priced, comfortable housing, we believe in creating easy, cozy immediate move-in opportunities for an increasingly mobile population that prefers turnkey living, comfortable surroundings, and convenient locations over costly, cumbersome, stressful, time-consuming and what can become exorbitant move-in fees. Furthermore, we believe “all-in or furnished” housing acts as a buffer in the case of a recession. During the Great Recession, upon transforming into furnished housing, The Cardigan managed not only to survive a down-trodden market, but to thrive in it. We consider the extra layer of furnishings not only as valuable appeal to a mobile population but the additional incremental rent it drives acts as a hedge against recession.
Is ‘furnished housing’ the same as Airbnb or VRBO? We are not Airbnb, VRBO, or others like these. We do not rent to anybody for less than 30 days and very few tenants stay for less than three months with the average stay at six to twelve months. Some of our tenants ask for annual leases and others have been with us as long as nine years. This, as well as the fact that our buildings are in strict compliance with zoning rules, ensures our adherence to Seattle’s long-term rental housing rules and regulations.
What is our approach to timing real estate cycles? While we maintain an active awareness of current market trends and cycles, we avoid market-assumption-timing. We also recognize that global events could cause unexpected changes in the economic environment or create a rapid downtown. We offer a strong, patient, conservative approach to finding properties at or below market rates without over-leveraging and only when we can add meaningful value. This way we build a practice of consistent, disciplined focus which stands the test of trends and time.
Why Seattle and its surrounding areas? We believe in hyper-focus on one location and one market, leveraging cost-saving economies of scale, intimate knowledge of the area and city urban-planners, and the value of long-standing relationships with vendors, brokers, clients, and property managers. We have been in Seattle area for over 30 years and believe that its new status as a primary real estate market is just getting started. We believe that because Seattle is uniquely surrounded by land, mountains, and sea, its land-limitations will continue to increase property value. In addition, we see job growth continuing alongside the discovery of Seattle area as an urban-meets-outdoor lifestyle gem.
How do you promote Invigorate units? We work with the power of relationships, strong networks, word of mouth, business and community development, online presence and social media with a consistent, rapid-response foundation of top-notch service to guest residents (a.k.a. tenants).
Is this a passive or an active investment? For the investor, yes, this is a passive investment. Invigorate’s philosophy is to utilize investment funds to leverage the purchase of a building, stabilize the transition of ownership, add value through interior rehabs and exterior renovations, furnishing units, and via community development in order to create consistent cash-flow and greater returns upon disposition for our investors. We make money only when our investors make money.
What is your equity investment approach? We believe in a conservative approach which means using only modest debt for leverage, maintaining the discipline to vet and buy at or below market rates, and where we believe we can add value to the building, its tenants, and the community. We focus on small buildings others might consider to be ugly ducklings—but that we see as an opportunity to cost-effectively beautify and transform. These buildings offer great opportunities for transformation into traditional rent, and/or mid and long-term furnished units for clients seeking convenience and comfort. All our properties are within fifteen to twenty minutes of the Seattle downtown core which we believe also provides an extra safety net in the case of downturn.
Am I an Accredited Investor? In compliance with applicable securities laws, potential investors are required to complete a Confidential Questionnaire (“CQ”) establishing “Accredited Investor” status prior to receiving an actual Offering, (Private Placement Memorandum) to review. The questionnaire covers questions about an individual’s income and net worth. For more information please call or email us.
How do we communicate with our investors? We report on a quarterly basis and are always open to calls and tours.