Aspire Residential seeks long-term (generational) capital partners who are inspired by doing well and doing good. Aspire addresses climate change and affordable housing while providing a superior return to our LPs within our asset class.
Preferred return to LPs
The limited partners get their entire principal and 8% interest on their investment repaid before the general partners receive any carry. Aspire typically targets 7 years to return all preferred equity and interest.
Net Zero = increased revenue and asset value
A Net Zero building include utilities in the rent for premium. Renters will pay up to live in a sustainable building. Revenue goes up. But operating expenses also go down in terms of utility expenses, insurance and more.
Lower risk asset class w/in multifamily sector
Our general philosophy is to build for attainable rents at a low cost basis. When times are tough the class A renter becomes a class B renter and so on. Aspire lives in that attainable price point.
Low GP fee structure
Aspire charges a 3.5% development fee – which is shared with the Co-GPS in each geography. Aspire does not ‘layer on’ any additional fees at the Aspire level. After full return of principal and interest, Aspire charges a 1% asset management fee. We do not charge acquisition, syndication, financing, AUM or exit fees.
Tax efficient cash flows
Investments in energy efficiency, solar, batteries and other green investments qualify for tax incentives which flow through to the LPs. Depreciation against operating income can dramatically increase ROI. LPs should consult their tax advisors.
Material impact on sustainability
Aspire buildings produce all of the power they require for heating, cooling, hot water, cooking, laundry and miscellaneous electric on site. This has an outsized impact on greenhouse gas emissions. We use materials and methods to minimize embodied carbon.
Lower cost to construct and operate
With our partners, we target total costs: land, soft costs and hard costs 20% below conventional developers.
Long term wealth creation through asset appreciation
All real estate goes through cycles. But the long term trend line is for rents and property values to inflate over time. Aspire constructs high quality buildings for long life which become a store of wealth.
Attainably priced quality housing that is healthy and resilient
Aspire rents are priced for the missing middle. But that doesn’t mean we build cheap buildings. To the contrary, we provide high quality buildings with superior indoor air quality. And when the power goes out, Aspire residents still have heat/cooling, refrigeration and power for communications.