Where Young Professionals Want To Live
Vibrant Communities. Desirable Locations.
Identify
Acquire
Rehabilitate
What we do is equal parts analytical and creative, Madison Communities is adept at recognizing overlooked opportunities while visualizing ones that don’t yet exist in both assets and locations that attract the middle-market millennial. By targeting value-add and underperforming multifamily properties in the Phoenix MSA, we offer risk-adjusted returns while maintaining a strong local footprint.
Madison Communities
Madison Communities utilizes a proven, strategic approach to acquire well-positioned multifamily properties, create communities that attract an underserved millennial submarket and ultimately offer a notable investor return.
2021 Median Household Income by Block Groups
$73,340 - $200,000
$55,637 - $73,339
$44,414 - $55,636
$34,673 - $44,413
$0 - $34,672
Multifamily Investment Targeting Middle-Market Millennials
Madison on the Rail
Madison on Maryland
Madison at Melrose
The V on 26th
The Quad
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Investment Strategy
Hold asset for 5 to 7 years and sell or refinance once property achieves a risk-adjusted return.
Entry with purpose. Exit with intention.
Exit Strategy
Acquire the asset, perform due diligence, manage renovation process, and provide property and asset management services.
Vertically Integrated
Implement the Millennial Lifestyle Approach by renovating the asset, stabilize at market rents and enhance investor returns.
Execution
Buy mismanaged and distressed multifamily properties and reposition asset to the rapidly growing millennial demographic.
Strategy
A Formula For Success
Acquisition criteria that maximizes returns
VALUE Distressed and/or underperforming, well located properties offering significant upside. SIZE 10-40 units. TYPE Class B or C multifamily properties. LOCATION Up-and-coming neighborhoods in Phoenix MSA with desirable proximity to schools, employment, transportation, nightlife and retail. METRICS Submarket with favorable supply/demand. DEMOGRAPHIC Millennials and young professionals. RETURNS Value-add or mismanaged assets that offer risk-adjusted yields once stabilized.
A Strategic Approach that Maximizes Returns
Underperforming property with below market rents & high expense loads
Uncovering Value.
Operational Inefficiencies
Acquire properties with significant deferred maintenance
Deferred Maintenance
Out-of-state owner or mismanagement due to owner self-managing
Mismanaged
Purchase deals off market at a steep discount
Off Market
The Life Cycle of An Investment
Increase rent and decrease expenses Create operational efficiencies Capitalize on opportunities to add income Implement utility bill-back system when warranted
Success is in the details.
Cash Flow Enhancement
Offer live/work/play lifestyle at discount to newer properties Attract millennials who can’t afford Class A properties Improve tenant retention by catering to millennial lifestyle
Attract Middle-Market Millennials
Refinish with modern, high-end interiors Utilize energy efficient appliances Create open floorplans Finish exterior with deco/mid-century aesthetic
Add Modern, Mid Century Improvements
Rebrand and stabilize property to optimize performance Provide superior management Attract strong millennial tenants Increase competitiveness of property
Utilize Proven Millennial Lifestyle Approach
Creating attainable, urban living environments.
Buy + Renovate Property
Investment Lifecycle
Increase Rents
Hold Property
Distribute Cash Flow
Sell or Refinance
Phase
01
02
03
04
The Strategy
Purchased property off market at a significant discount Raised $580K from investors Spent $35K/unit for interior/exterior renovations. Renovations include new paint, upgraded landscaping, stainless steel appliances, quartz countertops, new bathrooms and modern flooring Increased rents by an average of $450/month Retenanted the property with Millennials and Young Professionals
The Stats
Phoenix, AZ Units: 13 Acquisition Date: July 2019 Disposition Date: May 2021 Purchase Price: $1,500,000 Sale Price: $3,185,000 Return on Investment: 255% Equity Multiple: 2.55x
Purchased property at a discount to intrinsic value 1031 Exchange from Madison on Melrose sale Property was already renovated and stabilized with below market rents Do “light” value-add to interior/exterior Increase rents by an average of $150/month across the board Forced appreciation by bringing rents to market
Phoenix, AZ Units: 18 Acquisition Date: July 2021 Purchase Price: $3,425,000 Projected Sale Price (Year 5): $4,500,000 Projected 5 Yr Cash-on-Cash Return: 10.5% Projected Equity Multiple: 2.0x
Purchased property off market at a significant discount Raised $500K from investors Budgeted CapEx of $35K/unit for interior/exterior renovations. Renovations include new paint, upgraded landscaping, stainless steel appliances, quartz countertops, new bathrooms and modern flooring Increased rents by an average of $450/month across the board Retenanted the property with Millennials and Young Professionals
Phoenix, AZ Units: 8 Acquisition Date: October 2020 Disposition Date: May 2021 Purchase Price: $1,120,000 Sale Price: $1,940,000 Return on Investment: 95% Equity Multiple: 1.95x
Purchased property at a discount to intrinsic value Raised $475K from investors Property was already renovated and stabilized with below market rents Increased rents by an average of $150/month Forced appreciation by bringing rents to market
Phoenix, AZ Units: 8 Acquisition Date: March 2020 Purchase Price: $1,460,000 Projected Sale Price (Year 5): $2,850,000 Projected 5 Yr Cash-on-Cash Return: 11% Projected Equity Multiple: 2.75x
The V
Purchased property at a discount to intrinsic value Raised $700K from investors Property was already renovated and stabilized with below market rents Increased rents by an average of $150/month across the board Forced appreciation by bringing rents to market
Phoenix, AZ Units: 11 Acquisition Date: October 2020 Disposition Date: May 2021 Purchase Price : $2,050,000 Sale Price: $2,710,000 Return on Investment: 85% Equity Multiple: 1.85x
Our Trusted Foundation
Madison Communities is built on a foundation of experience earned by working with the largest industry leaders in the world and brokering more than $12 billion of institutional-quality real estate.
An approach developed through industry experience
Proven Expertise
National platform underwriting and our knowledge of detailed line item operations allows us to drive value, enhance investor returns and predict future NOI by understanding the potential of a project.
Credible Underwriting
As one of the top multifamily markets in the nation, Phoenix has seen robust occupancy and healthy YoY rent growth — at 5% — over the past few years.
Strong Fundamentals
We acquire value-add and underperforming properties at a discount to intrinsic value and capitalize on the growing demand from millennials and young professionals who desire modern living and an affordable price point.
Targeted Approach
Our experience, our strategic approach and our location afford a type of unmatched market leverage.
Our Leadership
While at IPA, Mr. Britto assisted in the underwriting, research and marketing of more than $12 billion in real estate transactions — totaling over 30,000 units.
Experienced. Strategic. Focused.
Underwriting
Mr. Britto earned valuable experience at IPA, which specialized in the acquisition and disposition of institutional-quality multifamily communities on a national platform.
Institutional Background
Mr. Britto transitioned to the brokerage side of the business in 2012, joining one of Marcus & Millichap’s top teams in IPA Student Housing.
Brokerage
Mr. Britto started his real estate career in the research depart of Marcus & Millichap (M&M), one of the largest commercial real estate brokerage firms in the country.
Career
Justin Britto, Managing Principal, relies on his 12 years of commercial real estate experience to guide Madison Communities. As a relationship-driven professional, Mr. Britto leverages the vast network of industry contacts he has accrued over his career to find off-market multifamily opportunities.
Justin Britto
Managing Principal Madison Communities
Diverse Background. Trusted Performance.
Managing Principal Madison Communities P | 480.290.8005 E | JDBritto@madisoncommunitiesaz.com
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