Market
Sectors
Emet makes control investments in distressed debt secured by rental housing assets that qualify for municipal revenue bond financing. The real estate assets are typically within the subsectors of affordable housing, student housing, and senior housing, and exhibit asset and financial distress.
Affordable
Housing
Description
Our affordable housing target is mainly for families whose incomes do not exceed 80% of median income within a metropolitan area. The vast majority of multifamily housing qualifies by virtue of the naturally occurring tenant base as depicted.
Sector Benefits
- Large market
- Consistent demand for Class B/C apartments
- Strengthening rental market fundamentals
- Non-profit owners often neglect properties, leading to asset distress
Student
Housing
Description
Predominantly off-campus housing for students enrolled in four-year colleges and universities.
Sector Benefits
- Continual demand for higher education
- Specialized ownership and management requirements can discourage operator participation
- Once-a-year move-ins
- 9- to 12-month rental cycles
- Renter demand for amenities
- Projects suffer from high physical stress and require significant ongoing capital due to student tenant profile
- Security vintage ripe for distress
Senior
Housing
Description
Independent living projects, assisted living communities, skilled nursing facilities, and combinations thereof.
Sector Benefits
- Rapidly growing senior population
- Stable tenants
- Complexity can discourage operator participation
- Highly regulated industry
- Multifaceted operations
- Highly trained staff
- Difficult-to-manage mixed-stage projects
