Framework for Value Creation
Combining a strategic investment viewpoint with sophisticated execution capabilities, we strive to create value while mitigating risk by relying on a strong fiduciary culture.
- Tri-Sector Investment Policy
Sub-institutional multifamily assets, typically comprising properties with fewer than 200 units or located in secondary markets, offer strong fundamentals and consistent demand driven by the ongoing affordability crisis in housing. These assets provide stable, recurring cash flow from long-term leases, with rent growth supported by high demand for affordable housing in mid-tier urban and suburban areas. Additionally, the sector offers tax advantages through depreciation and value-add opportunities via operational improvements or strategic management, enabling rent growth and asset appreciation. With a favorable risk-return profile, sub-institutional multifamily is an attractive option for long-term capital preservation and growth.
Flex and industrial properties benefit from the surge in e-commerce and the growing need for last-mile logistics space. Positioned in suburban or secondary markets, these assets serve tenants across logistics, distribution, and light manufacturing, providing stable, higher-yield returns. The demand for flexible industrial space remains resilient even during economic cycles, as it caters to essential business operations. With a diversified tenant base and a supply-demand imbalance in key markets, small flex/industrial assets offer compelling opportunities for investors seeking stable income and long-term growth.
Neighborhood retail properties, housing essential service tenants like grocery stores, medical offices, and fitness centers, offer stable, predictable cash flow and resilience to broader retail sector disruptions. These centers typically attract long-term tenants, reducing turnover and vacancy risk. Compared to larger retail formats, neighborhood retail is less competitive for institutional capital, providing acquisition opportunities at favorable valuations. With potential for value creation through tenant optimization or redevelopment, these assets deliver strong income potential and long-term growth in both urban and suburban markets.
- Investment Geography
Navigating Untapped Potential: We concentrate our investments in emerging markets with high growth funtamentals, strategically selecting regions that are undervalued or overlooked by conventional institutional investors. By entering these markets ahead of larger capital inflows, we maximize returns and position ourselves as first-movers, harnessing growth before mainstream institutions take notice.
Huntsville
$6.4 billion in new industrial investment from 2018-2023, led by Meta, Amazon, Blue Origin, Boeing, Mazda, Toyota, & Lockheed Martin.
Northwest Arkansas:
Northwest Arkansas is a hub for corporate expansion, highlighted by Walmart’s new multi-billion home office campus, alongside Fortune 500 giants Tyson Foods and J.B. Hunt, driving unprecedented demand for housing and commercial real estate.
Knoxville:
Knoxville is in close proximity to Oak Ridge National Laboratory and Y-12 Security Complex which provide a $7.2 Billion economic impact to East Tennessee. The two complexes support 43,000+ jobs.
Chattanooga:
The Chattanooga Area Chamber of Commerce set a 5-year goal of $1 billion in capital investment, but the goal was reached in just 3 years, a sign that the city is keeping pace with continually attracting business to the area.
Navigating Untapped Potential: We concentrate our investments in emerging markets with high growth funtamentals, strategically selecting regions that are undervalued or overlooked by conventional institutional investors. By entering these markets ahead of larger capital inflows, we maximize returns and position ourselves as first-movers, harnessing growth before mainstream institutions take notice.
Huntsville
$6.4 billion in new industrial investment from 2018-2023, led by Meta, Amazon, Blue Origin, Boeing, Mazda, Toyota, & Lockheed Martin.
Northwest Arkansas
Northwest Arkansas is a hub for corporate expansion, highlighted by Walmart’s new multi-billion home office campus, alongside Fortune 500 giants Tyson Foods and J.B. Hunt, driving unprecedented demand for housing and commercial real estate.
Knoxville
Knoxville is in close proximity to Oak Ridge National Laboratory and Y-12 Security Complex which provide a $7.2 Billion economic impact to East Tennessee. The two complexes support 43,000+ jobs.
Chattanooga
The Chattanooga Area Chamber of Commerce set a 5-year goal of $1 billion in capital investment, but the goal was reached in just 3 years, a sign that the city is keeping pace with continually attracting business to the area.
- Investment Criteria
RECAP Ventures possesses deep local market knowledge and a proven track record of success. We are actively seeking real estate investments within our selected markets across three core sectors: multifamily, flex/industrial, and retail. Our investment strategy includes varying risk-return profiles, ranging from core to opportunistic.
Deal Size:
Generally $5–$25 Million
Target Hold Period:
7-10 Years
Investment Characteristics:
- Stabilized
- Yield Focused
- High Occupancy
- Infill / Prime Location
Asset Classes:
- Multifamily
- Flex/Industrial
- Neighborhood Retail
Deal Size:
Generally $5–$15 Million
Target Hold Period:
3-5 Years
Investment Characteristics:
- Strong Basis
- Total Return Focused
- Straightforward Path to Positive Leverage
Asset Classes:
- Multifamily
- Flex/Industrial
- Neighborhood Retail
- Case Studies
Core
The Flats at Chisholm Creek
The Flats at Chisholm Creek, a 66-unit Class-A apartment community in Wichita, KS, was acquired off-market at $1.95 million below the initial asking price. Despite being a 2018-built asset with premium finishes, it was underperforming due to unprofessional management. Post-acquisition, we engaged a top local property manager and implemented targeted improvements, including property-wide refurbishment and signage updates. Within six months, we increased rents by 10.7%, achieved full occupancy, and retained 100% of renewing tenants despite higher rents. This strategic turnaround highlights our ability to unlock value through disciplined acquisitions and operational excellence.
Value-Add
Willow Park Apartments
Willow Park Apartments, a 56-unit garden-style community in Fayetteville, Arkansas, was acquired off-market in 2023 after extensive market screening over the course of a year. By leveraging a longstanding relationship with a broker, we acted quickly, submitting a full LOI and securing the property under contract within just 72 hours, despite competing offers that were 5%-10% higher. The property, previously owned by a mom-and-pop operator for over a decade, presented an opportunity for value creation. We implemented strategic upgrades, including modernizing select units with new kitchens, flooring, and energy-efficient appliances, while also improving the exterior with fresh landscaping, pressure washing, and updated signage. These improvements, coupled with the area’s strong economic fundamentals, drove a 28.5% increase in rents over the course of a year, enhancing the property’s cash flow and overall value
Opportunistic
Sequoyah Townhomes
Sequoyah Townhomes, a 24-unit townhome community in Fayetteville, AR, offered a unique investment opportunity due to its prime location near the University of Arkansas and limited local housing inventory. At the time of acquisition, eight units were non-operational and in disrepair, but we saw potential in the property’s location and the strong demand for affordable starter homes. Over 12 months, we executed a plan to restore the units, addressing necessary repairs and improvements to bring them to a rentable condition. The project culminated in the successful sale of all 24 units, capitalizing on the area’s high demand, and delivering a strong profit, showcasing our ability to transform undervalued properties into profitable ventures.