A focused, repeatable approach to acquiring and operating multifamily real estate in markets with structural demand tailwinds.
Multifamily construction starts have fallen more than 60% from their 2022 peak. Permits are at decade lows. Meanwhile, household formation remains strong, single-family ownership is unaffordable, and the largest renter cohort in U.S. history is still aging into peak rental years.
The result is a setup we believe is the most attractive multifamily entry point in over a decade: existing assets are trading at a meaningful discount to replacement cost, new competing supply is shrinking through 2027, and operators with conviction and capital can compound at outsized risk-adjusted returns.
Read our market letterA deal must clear every line below to advance to LOI. We update these criteria as the market evolves; we do not stretch them to fit a deal.
| Criterion | Target |
|---|---|
| Asset class | Class B / B+ garden, podium, or low-rise multifamily |
| Vintage | 1995 – 2015 |
| Unit count | 100 – 350 units |
| Markets | Sun Belt and Mountain West metros with positive net migration |
| Submarket | Top-quartile schools, sub-15-minute drive to major employment node |
| Basis | 15–25% discount to replacement cost |
| Going-in cap | Minimum 75–100 bps spread over agency debt |
| Value-add scope | Identifiable interior or operational lift; no ground-up risk |
| Hold period | 5 – 7 years |
| Target investor IRR | 14% – 18% net to LP |
We source through a focused broker network in our target submarkets, supplemented by direct owner outreach. Most of our pipeline is off-market or lightly marketed.
Every deal is underwritten to a base, downside, and recession case. We size acquisition equity to the downside, not the base.
Physical, financial, environmental, and legal diligence — including a third-party rent and expense audit and on-site walks of every unit type.
Agency or bank debt at conservative LTC; rate caps on every floating loan. Investor capital is called only after closing certainty.
Renovations executed on a unit-turn schedule. Weekly KPI reviews on leasing, expenses, and capex pacing. Quarterly investor reporting.
We sell when the business plan is complete and the market rewards stabilized basis — not on a calendar. 1031 exchange and refinance options are evaluated alongside outright sale.
Review our current portfolio and active pipeline, or reach out to discuss whether Aether's approach fits your portfolio objectives.
View portfolio Contact us