Value-add in the multifamily space usually means interior upgrades to apartments in the form of granite countertops and stainless steel appliances.
But CAF Funds, a new division launched under the umbrella of CAF Cos., has a different definition of what qualifies as a strategic upgrade when acquiring older apartment communities.
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This new CAF investment platform was created to acquire older workforce housing apartments across Texas and add educational and personal-development programs on-site to improve residents’ quality of life.
“We are excited about adding CAF Funds Division to our portfolio and feel this is a great way to not only invest in our company but also in our tenants and their communities,” CAF Cos. CEO Chris Faulkner said.
CAF Funds’ on-site programming is expected to include English as a Second Language classes, after-school programs, job fairs, day cares, healthcare-related testing, educational seminars, tutoring and nutritional seminars among other initiatives at the property level.
“The value that we honestly believe that we provide is the on-site programming and becoming a platform to residents to make their lives better and provide those programs to benefit their livelihood,” said Vice President of Operations Matt Falkin, who is formerly of Streetlights Residential and Aragon Holdings.
Falkin predicts these programs will result in higher retention rates across properties as residents find their lives enriched and spread the word about the programming.
“Our internal analysis and academic research shows we can align investor and resident interests and make market-rate returns,” Falkin said.
In addition to adding educational programming at acquired multifamily properties, CAF Funds intends to become an early adopter of new technologies, including artificial intelligence solutions at the community level, Falkin said.
“Of the deals that we plan to acquire and to do some light traditional value-add, we want to be an innovator when it comes to the upgrade,” Falkin said. “We want to do stuff beyond the commoditized scope of work that the rest of the industry really has adopted over the last 10, 20, 30 years.”
Parent firm CAF Cos. has 32 multifamily properties in Texas with plans for further expansion in DFW and Houston and other parts of Texas. Throughout its history, the company has closed on and managed more than $3B worth of apartment properties.
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