Fund Summary

High Volume,
High Quality
Deal Flow

Optimal Timing Of Asset Disposition

Disciplined Underwriting & Acquisitions Process

Tenacious Business Plan Execution

Value Creation Plan Tailored To Each Asset

  • High quality, first look, off market deal flow
  • Strict, disciplined underwriting and acquisition process to mitigate risk, preserve capital
  • In-house staff develops a strategic business plan to maximize asset value
  • Best-in-class asset management begins with well designed value creation plan for each asset
  • Best-in-class third-party property management professionals
  • Correctly determine optimal exit points

The Aii Multi-Family Fund IV is a $100 Million fund focused exclusively on the acquisition of approximately 15 - 25 income producing multi-family properties in top markets forecasting job and population growth.

About the Manager

  • Apartment Income Investors (“Aii”) is a privately held real estate investment firm based in Los Angeles that focuses on the acquisition and management of opportunistic and value-add multi-family properties.
  • Aii specializes in repositioning well located assets with significant value-add potential through the successful execution of a detailed investment strategy and business plan.

Strong Track Record

  • Aii has generated a 35% IRR since inception from multi-family investments across multiple geographies, deploying nearly $50 million into the multi-family sector over the course of 22 transactions
  • Founded and led by seasoned real estate investor Michael Chesser, who has led Aii since 1994 and in the process has generated stable returns for investors through multiple cycles
  • Cohesive management team has 80 years of combined experience working together at Aii

Market Opportunity

  • Aii focuses on Class B multi-family opportunities with strong fundamentals that have the potential to compete well in their respective geographies
  • Class B is less correlated in nature and offers a favorable risk-reward profile to that of Class A —targeting underperforming assets at a steep discount where there is a clear path to occupancy and rental rate improvement

Summary of Terms

Target IRR
Deal Size
Fund Life
Target Leverage
Management Fee
Carried Interest
Distributions Waterfall
Preferred Return
GP Commitment
Co-Investment

18%+ Net to LP's (after fees and carry)
$3mm to $40mm per asset
10 years
Moderate, 65% to 75% of property value
1.5% on committed
20%
80%/20% catch-up after 8% preferred return, 20% to the GP thereafter
8% per annum
5% of aggregate capital commitments
Yes

Investment Cycle

Assessment Phase

Operations Phase