SAN FRANCISCO, CA (January 2020) – Happy New Year! As we enter into a new year that marks the start of a new decade, it is necessary to reflect upon the achievements and challenges of the past decade as well as look forward and set goals for the decade to come.
The general partners’ first acquisition in the existing portfolio began in 2012. Since then, we purchased 26 properties totaling 4,991 individual units, $369M in market value, and $99.5M equity invested. As of January 1, 2020 we had averaged an annualized net return of 29.8% with the average investment period of 4.2 years for our investors.
Much of our success has been a result of us staying true to one of our founding principles which is to be both property owners and stewards of these communities. At each of our properties we have developed and implemented community enrichment activities that are tailored to the specific needs of each individual property. These activities, which vary from financial literacy initiatives to social events, foster a sense of community and develop camaraderie among residents. This in turn creates happy residents who are more likely to stay and make these communities their home.
While this past decade has been marked with achievement, it has likewise been marked with challenges. During this period, housing has become an unmistakable crisis with nearly every major metro worldwide experiencing significant pressure for housing. Of US population growth, 43 percent of people will have low to moderate income levels, placing even greater pressure on the existing stock of affordable rental housing.
Polaris Real Estate Partners is well positioned to rise to this challenge and to meet the needs of an expanding rental market. Moving forward, we plan on expanding our portfolio. We currently manage 3,600 units and within the next 18 months we will add an additional 2,000. This expansion will include extending our reach into new markets such as Nashville, Atlanta, and North Carolina.