How Strata Stays Flexible Among Competitors

SAN DIEGO—Private-capital sources give the firm the flexibility to get in and out of assets and markets at its discretion, Strata Equity Group's president David Michan tells GlobeSt.com. Following his company's recent acquisition, in partnership with a private Mexican investor group, of a 12-property multifamily portfolio from Blackstone Real Estate Partners VII, we spoke exclusively with Michan about Strata's acquisition strategy and what's important to keep in mind when upgrading older properties.

GlobeSt.com: What is your firm's acquisition strategy in a sector where there is so much competition to purchase properties?

Michan: We are looking at markets with long-term growth and sustainability, mainly driven by employment opportunities and population growth. We are sourcing and acquiring properties of certain vintages whose market presence can be repositioned and economic life extended by spending on property improvements. Our private-capital sources give us the flexibility to get in and out of assets and markets at our discretion—one- to 20-year hold periods—giving us a strategic edge when we are buying.

GlobeSt.com: What are the most important amenities you provide to tenants when you upgrade older properties?

Michan: Our goal is provide the best customer service to our residents. The unit and common-area upgrades will level the playing field with our competition, but the human touch via our customer service is what differentiates us.

GlobeSt.com: Which geographical areas do you focus on, and what do they offer you?

Michan: We are focusing on the major Western coastal and the Sunbelt markets with solid and diversified employment bases and markets that are also migration destinations due to the quality of life.

GlobeSt.com: What else should our readers know about your company?

Michan: We are a boutique and nimble company in our mindset, but institutional in our capabilities and sophistication.