Elkstone Capital Partners
Leading the Herd in Real Estate Investments
Why Invest With Elkstone Capital Partners?
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75,000,000
AUM
$
612
Doors
+
5
Invested In
Deals
TARGET RETURNS
IRR
18%+
EQUITY MULTIPLE
2x+
Cash on Cash
7%+
Despite focusing on the Mountain West, Midwest, and sunbelt, Elkstone capital is a market agnostic and a asset type agnostic mid-sized real estate private equity company. We focus more on the specific economics of the deal as we are highly return driven and place careful emphasis on the quality of the deal's sub-market and demand drivers. We have done value add, core +, and even opportunistic deals like our conversions.
Our bread and butter is Multifamily and Hotel to MF conversions, but we have experience across a wide spectrum of commercial asset classes as well including self storage, industrial, office, and more. We focus on increasing NOI, cutting expenses (or increasing expenses when it makes sense in order to improve the performance of a property) and finding ways to compress the cap rate on our properties. All so we can significantly improve property valuations for our investors.
We know what our investors need. Each partner has a different risk / return profile so we custom tailor each deal to each investor. This has allowed us to raise over $17M in equity from our partners to date. Our equity is a mix of retail investors, family offices, and RIAs. We don't set over-realistic expectations, we underwrite carefully, and we communicate challenges right away.
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We have a meticulous underwriting process and typically underwrite a higher exit cap than going in, little rent growth year 1 depending on the location, higher OPEX than current, run multiple sensitives, and we don't test the market with rents. You can read more about Elkstone Capital and see our full business plan, investment thesis, and underwriting guidelines we've set for our organization below.
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ASSET CLASSES
We are 7M affordable units short in the USA. The working class desperately needs housing, and extended stay hotels with small studio units and kitchenettes present the perfect play to convert to dedicated workforce housing. We can purchase them at a 12-15% going in cap rate and sell them for a 6.5-7.5% cap rate creating millions of dollars of value via cap rate arbitrage. One we recently purchased for $4.75M and its after completion value appraised at $9M.
Apartments excel due to their consistent rental income, stable demand, and potential for long-term appreciation. They are recession resilient as everyone always needs a place to live. With economies of scale, diverse tenant bases, and favorable financing options, apartments offer a compact yet robust investment opportunity.
Self-storage emerges as a compelling investment with its steady income stream and minimal management requirements. Demand for space remains resilient, driven by life events such as relocation or downsizing. These properties often have lower operating costs making self-storage an efficient and lucrative asset class for investors seeking simplicity and consistent returns.
Single Family for Rent has emerged as the new darling of institutional real estate investing. It offers a cheaper alternative to owning a home, especially with how expensive mortgages are due to historically high home values and interest rates. Families get the perks of a home-owner lifestyle on the budget of an apartment rental. We just started a Midwest SFR fund targeting 25% cash on cash returns. This is ideal for investors who want cash flow and can stomach slightly higher risk.