Aurigem Capital Partners AurigemCapital Partners
What we buy

The buy box

  • Asset: vintage Class B and C garden and townhome communities with a clear value-add plan: unit interiors, exteriors, amenities and operations.
  • Neighborhood: safe, established areas with excellent-rated schools, employment, health care, shopping and entertainment within a short drive. We underwrite the neighborhood before the property.
  • Markets: Florida and the Southeast (the Carolinas, Tennessee, Georgia), plus select Midwest metros with the same demand drivers.
  • Size: $3M to $5M equity raise per deal, roughly $8M to $15M total capitalization.
  • Basis: below replacement cost, with the renovation budget and reserves funded at closing. Exit cap rate at or above going-in.
  • Debt: 65 to 70 percent loan-to-value, fixed-rate or agency where available, with positive leverage from day one.
  • Hold: five years. Renovate and stabilize in years one and two, operate, then refinance or sell.
How we underwrite

Conventions we do not bend

  • Operating expenses at the higher of trailing twelve months or trailing three months, with payroll modeled standalone.
  • Property taxes reassessed at our purchase price. Insurance at current Florida quotes, not the seller's expiring policy.
  • No year-one credit for interest income, bad-debt recovery, damage income or other one-time items.
  • Rent-roll trend analysis on new leases and renewals before we trust any rent growth assumption.
  • A five-year flat-rent stress is run before we set price. If the deal does not survive it, we do not bid.
Return gates

Thresholds at our price, five-year hold

2.0x+
equity multiple
6%+
average cash-on-cash
15%+
internal rate of return
15%+
average annual ROI

Average annual ROI is defined as (equity multiple minus one) divided by hold years. Gates are underwriting thresholds, not projected returns of any offering.

Process

From offering memorandum to closing

Screen

Every offering memorandum gets a neighborhood check first: school ratings, employers, hospitals, retail and crime data. Then a three-check screen against replacement cost, in-place yield and the gates.

Underwrite

Full five-year model with the conventions above, rent-roll trends, a line-item renovation budget, tax and insurance reset, and the flat-rent stress. Price is set from the model, not from guidance.

Offer and diligence

Letter of intent with our key principal partner, unit-by-unit walk, third-party reports, contractor bids, lender process and a re-underwrite on actual financials.

Close, renovate, operate

Renovation funded at closing and run in phases to protect occupancy. Professional management with weekly oversight by the principals, and investor reporting that shows the same numbers we track.

Where we are today. The platform is actively underwriting value-add communities in Florida and the Southeast and submits offers only on deals that clear the gates above. No asset is owned by Aurigem as of this writing. Contact a principal to receive underwriting on the next opportunity.