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OUR STRATEGY

OUR INVESTMENT STRATEGY IS BASED ON THE FOLLOWING KEY CONSIDERATIONS

ECONOMIC CYCLES

Careful evaluation of macro and micro economic cycles to ensure that the investment will perform as conditions inevitably change.

MARKETS

We carefully evaluate supply and demand, demographics, historical performance and other market conditions to identify high growth, supply constrained markets.

INFORMATION

We utilize our relationships with local and National Brokers, Lenders and other market participants to gain superior information that is not available to the market at large.

Acquisition Criteria

Location

We focus on emerging and stable Midwest markets with strong near- and long-term economic growth drivers, including job growth, population stability, and favorable landlord/business climates.

Business Plan Strategy

We focus on creating steady, measurable value through straightforward improvements. This includes interior renovations, common-area upgrades, and targeted amenity enhancements. We also emphasize strong property management and expense control, ensuring performance improvements come from both physical upgrades and operational efficiency.

Asset Size

We target multifamily communities between 50–200 units with a maximum purchase price of approximately $24 million.

Asset Type

We pursue Class B and C value-add properties located in solid working-class to middle-income neighborhoods.

Return Targets

Our investments are built to provide:

8–10% average annual Cash-on-Cash returns
20+% Internal Rate of Return (IRR) over a 3–5 year hold
1.7x–2.0x Equity Multiple min across the investment lifecycle

These targets are based on conservative underwriting and market fundamentals.

Construction: 1990s or newer preferred (no older than 1980s unless significantly upgraded).
Excluded: Student housing, senior living, high-rise, motels, or Section 8-only properties.

Hold Period

Typical hold is 3-5 years, depending on business plan execution and market conditions.

Capital Structure

We typically use 65–70% senior debt financing with 30–35% investor equity. This balance allows us to leverage attractive financing while maintaining stability and flexibility for our investors.

Location

Unit Mix

Balanced unit mix preferred, with no more than 30% one-bedroom units.

Operating History

We prefer stabilized assets with 90%+ occupancy, but will consider underperforming properties with a strong value-add story and favorable location.

Location

We avoid markets with declining populations, heavy new construction supply, new developments, or landlord-unfriendly legislation. Property types such as student housing, senior living, motels, high-rise buildings, and Section 8-only housing remain outside our scope.

Path of Progress Strategy

At JEM Capital Partners, we focus on investing in submarkets positioned for long-term growth, often called the Path of Progress. These are areas where economic activity, infrastructure projects, and population trends indicate strong future demand for housing.

Here’s how our strategy works:

Market Growth Indicators – We target neighborhoods experiencing job growth, wage increases, and steady population movement, creating long-term rental demand.
Ongoing Development – We look for areas with strong city or private investment in infrastructure, commercial development, or redevelopment zones. These projects signal stability and future appreciation potential.
Attracting Residents – Families and individuals are moving into these areas for affordability, proximity to jobs, and quality of life improvements, making them resilient rental markets.
Value Creation – By acquiring well-located properties and executing thoughtful value-add renovations, we align our investments with the upward trajectory of these markets, driving both cash flow and appreciation.

Our Path of Progress strategy ensures that we are not just buying properties, we are investing in the future growth of communities, creating stable returns for investors and quality housing for residents.