Investment Strategy

Targeting student housing and multifamily properties.

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Arrowroot invests in modernizing and rebranding well located, vintage Class B student housing and multifamily properties. We focus on supply constrained markets throughout the United States:

Student Housing

Tier 1, research oriented universities with heavy emphasis on technology advancement and graduate level programs.

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Multifamily Targets

Metro markets with technology and research based job growth that attract higher income, well educated, young professionals who require rental housing.

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Niche tech-centric focus allows for investment in student housing and multifamily in the same or neighboring markets. This allows for more rapid growth in operational economies of scale in each targeted market.

The majority of institutional investment is focused on core assets and purpose built student housing allowing value-add properties to be purchased at a more attractive cost basis.

Student Housing

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Tier 1 Public Universities

  • Minimum Enrollment of 20,000 Students
  • School must listed in Best Colleges – U.S. News National University Rankings
  • Strong and recognizable athletic programs to act as future demand driver
  • Schools that are expected to bring in at least $100 million per year in research grants
  • Schools with selective admissions and high-quality faculty

 

Tier 1 Examples include: UC Berkeley, UC Davis, UC San Diego, University of Michigan, University of Utah, University of Washington, University of Wisconsin, Oregon State University, etc.


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Robust liquidity for exit options from institutional investors, sponsor groups and/or REITs.


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More than 75% of public university students require off-campus housing (US Department of Education, National Center for Education Statistics, Pew Research Center)


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We target universities that have shown consistently increasing enrollment, even during times of recession or a struggling real estate cycle.


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Greater opportunity to find undermanaged assets due to the complexities of leasing and operations that are inherent in managing student housing.

 

Multifamily Housing

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Multifamily

Focus on markets that have been successful in attracting and growing technology companies and attract younger, well educated work force.

 

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Properties are more likely to be owned and operated by unsophisticated and long term owners. These assets often have not maximized rent because interiors and common areas are dated, web based marketing and branding is stale or non existent.


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Protection from new supply competition by targeting properties at purchase prices below replacement cost.


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Profits are derived from cash flow growth by reducing expenses through operational efficiencies and rent growth.


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Current low interest rate environment allows for durable and steady cash flow in addition to post value ad appreciation and market growth.