Investment Model

Our model is simple. We invest with metro Boston’s top residential developers who have track records of consistent success and solid financial returns. We specialize in sale and renovation projects in the residential segment that historically create attractive returns on capital.  And we select good projects in strong markets. Our target return to investors is 12-14%. We approach market opportunities as value investors, and source residential development projects with the characteristics and advantages described here. 

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Unique Combination of Advantages

We are bringing efficiency to an imperfect, inefficient market.  AFB’s combination of its web-based fund raising and investment management tools, strong local real estate market knowledge, and efficient underwriting and structuring expertise is unique, and allows us to deliver superior, risk-adjusted returns to our investors.

The market for capital in this market is inefficient as development deals of the scale that we are specializing in are harder to locate and source. We believe that a uniform structure for funding these development deals with a unique network of successful builders will sustain our competitive advantage. Our extensive network in the local developer community built over many years brings with it a breadth of developer talent and opportunity.

Historically Rich Opportunities

The Greater Boston area has historically been a rich market for residential real estate development. Based on demographic trends research,  we believe this trend will continue with an expanding market of corporations headquartering and growing in the area; with a large stable of academic institutions that reliably attract students and staff; with growing families that enjoy a superior living experience with outstanding schools, museums, and sports teams; with regularly relocated professionals; graduates who join the local workforce; and with international investors interested in putting capital in safe haven real estate markets such as Boston.

With equity markets exhibiting volatility and certain years of stagnation and decline, well-targeted real estate investments in the Boston metro area can provide attractive risk-adjusted returns, providing relatively high yields to investors at lower risk.

Quality, Differentiated Offerings

Our extensive market knowledge and  relationships with successful developers in the market delivering a range of project types provide us a diversified portfolio of attractive real estate projects with developers and builders. Our team has managed over $5 Billion in investments and transactions in the residential segment over 30 years. We believe these will combine for sustainable, high-yield return opportunities for our investors. 

Value-Add Opportunities

AFB matches investors with investment opportunities---and places sdbetween $350,000 and $1,250,000 per project with 12-18 month target hold periods. We take either a mezzanine position or a preferred equity position, subordinate to the bank construction lender. 

Downturn Resistant

Durability of the local market and of the local buyer pool are key decision criteria in our investment selection process. In downturns in the metro Boston area, property close into the city declines least and last, and comes back fastest and first. Property further out declines first and longest, and returns last. We are interested in projects with substantial upside return but that also are hedged to downturns with bolstering factors such as proximity to city centers, proximity to public transportation, and a high rentability rating.

Reliable Exits

Understanding market demand and local economic conditions will allow us to assess and deliver opportunities that should deliver reliable exits. We are flexible investors—interested in maintaining focused decision criteria for success that also provide us an ability to invest with a variety of developers in a broad range of settings and residential development project types.

We are driving a diversified portfolio of investments across geography, property type, developer manager, and price range, so that investments are diverse, returns are maximized, and downside risk is reduced.