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HSR's Value-Add Strategy: Navigating the Multifamily Market

A discussion on HSR's value-add strategy and the various segments of the multifamily market.


Ethan Penner, Chairman of HSR, recently discussed the company's value-add investment strategies and its focus on different segments of the multifamily market with CEO Joseph Penner. Ethan emphasized HSR's 22-year history of adapting to market changes and its dedication to value creation.

Joseph explained that HSR’s value-add strategies address properties with physical, operational, and/or financial distress. These investments range from simple upgrades like carpet and paint to more extensive projects like rebuilding an entire building. HSR typically operates in the middle of this spectrum, focusing on properties that need significant yet manageable improvements.

Both Ethan and Joseph, having grown up in apartments, deeply understand the apartment dweller mentality. Joseph shared that HSR typically avoids the super high-end luxury market as well as the very low-end market. Instead, they focus on mid-market properties where they can create and offer significant value. Their goal is to acquire properties at a basis that allows them to deliver exceptional value to renters, ideally repositioning their properties in the A-minus to B-plus range. This strategy ensures their properties are more resilient, offering a compelling alternative to high-end products at a more affordable price point.

View the full interview with HSR’s Chairman Ethan Penner here.

Important Disclaimer:

The summaries, descriptions, and content in these videos are for informational purposes only and do not constitute tax, legal, or investment advice. The views expressed are those of the speakers and do not necessarily reflect the official policy or position of HSR or its affiliates. Investing in real estate involves risks, including potential loss of principal. HSR does not guarantee the accuracy or completeness of the information provided in the summaries or videos. Consult with qualified tax advisors, legal counsel, and financial planners before making any investment decisions.

Furthermore, these videos and their written summaries do not constitute an offer to sell or a solicitation of an offer to buy any securities or investment products. Any such offer will be made only by means of official offering documents and in accordance with applicable laws.

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