In 2013, Aureon formed a strategic partnership with Greystone, one of the largest multifamily lenders in the US, to capitalize on the opportunity to acquire nine Class B multifamily properties in secondary and tertiary markets.
Aureon acquired the properties through two off-market or limited competition transactions benefitting from higher yields and superior operating fundamentals as compared to Class A properties. The partnership invested selectively in unit upgrades, implemented expense reductions through economies of scale and achieved operating improvements by focusing on upgrading tenant quality.
18 months after initiating the investment strategy, significant capital started to enter the sector, which increased values without the execution risk. Ownership de-risked the investment by opportunistically selling individual assets.
