SYNDICATION
BENEFITS
AGM KNOWS SYNDICATION
And is actively acquiring. Real estate syndication is a type of investment strategy where multiple investors pool their financial resources to collectively invest in a real estate project. The syndication process involves a sponsor or syndicator who identifies, acquires, and manages the real estate asset, and passive investors who contribute capital to the project.
BENEFITS
Real estate syndication offers several benefits for multifamily investors. Some of the key benefits include:
LESS RISK
HIGHER RETURNS
TAX ADVANTAGE
PASSIVE OPPPORTUNITY
ASSET | PROPERTY MANAGEMENT
ACCESS
Access to larger multifamily properties: Syndication allows investors to pool their resources, which can enable them to access larger multifamily properties that may be beyond their individual investment capabilities. This opens up opportunities to invest in properties with higher income potential, increased diversification, and potentially greater appreciation prospects.
Risk-sharing and diversification: Syndication allows investors to share risks and responsibilities among multiple investors. This can help reduce the risk exposure for individual investors compared to investing in a property on their own. Additionally, syndication offers the potential for diversification by investing in multiple multifamily properties across different locations, property types, or investment strategies, which can further spread risk.
Potential for higher returns: Multifamily properties can provide attractive cash flow through rental income, as well as potential appreciation in property value over time. Syndication can provide access to such opportunities and potentially offer higher returns compared to traditional investment options. However, it's important to note that returns are not guaranteed and are subject to market conditions and the performance of the property.
Tax advantages: Multifamily properties can offer various tax benefits, such as depreciation deductions, mortgage interest deductions, and potential capital gains tax benefits upon sale. These tax advantages can help offset the taxable income from the property and potentially improve the overall after-tax returns for investors.
Passive investment opportunity: Real estate syndication allows passive investors to invest in multifamily properties without actively managing the property themselves. This can be appealing for investors who want to diversify their investment portfolio, earn potential income, and build wealth through real estate, but do not have the time, expertise, or inclination to be actively involved in property management.
Professional management: Real estate syndication typically involves an experienced syndicator who handles the day-to-day management of the property. This can be beneficial for passive investors who do not have the time, expertise, or desire to actively manage a multifamily property. The syndicator's professional management can help optimize operations, enhance cash flow, and increase property value.
STRATEGIES
There are several different types of commercial real estate investment strategies, each with its own unique approach, risk profile, and potential for returns. Some of the common types of real estate investment strategies that AGM practices for syndicating are:
CORE
INCOME GENERATING
VALUE ADD
ENHANCING PROPERTY VALUE
OPPORTUNISTIC
HIGH RISK, HIGH REWARD
A Core investment approach focuses on acquiring and holding income-generating properties for the long term, typically with the objective of generating stable and predictable cash flow and capital appreciation.
AGM's value-add real estate strategy is an investment approach that involves acquiring properties with the intention of making improvements or changes to enhance their value, and then selling or refinancing the properties to realize a higher return on investment (ROI).
AGM's opportunistic real estate investment strategy refers to a high-risk, high-reward approach that involves taking advantage of unique or specific market opportunities to generate substantial returns.
AGM'S LATEST
SYNDICATIONS
500 EAST UNION | SEATTLE
THE ONE THING: An older multi family structure on Capital Hill. 17 units, 100% renovated over 4 years, sold in 2023 for two times our investment.
SEATTLE THE ONE THING:
Acquisition Price: $2,25,0000
Equity Raised: $336,657
Sale Price: $3,400,000
Activity: Syndication & Asset | Property Management
East Union is a realized investment
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DICKS
RESTAURANT SUPPLY | BELLEVUE
MALTBY
MOBILE HOME PARK | SNOHOMISH
PACIFIC
BUSINESS PARK | PACIFIC
THE ONE THING: Dicks is in a coveted Spring District location. Signed 17 year existing tenant back up for another 10 years.
Acquisition Date: 2022
Acquisition Price: $2,400,000
Equity Raised: $2,500,000
Sale Price: N/A
Activity: Brokerage & Asset | Property Management
Dicks is an unrealized investment
THE ONE THING: Light industrial zoned site, acquired as a covered land play. Great cash flow until redeveloping
Acquisition Date: 2022
Acquisition Price: $4,025,000
Equity Raised: $1,300,000
Sale Price: $10,000,000
Activity: Brokerage & Asset | Property Management
Maltby is an unrealized investment
THE ONE THING: A well-located business park just off HWY 167. The first three years will realize a tenant mix moved to market rents, longer term leases all paying NNN’s. 6.3% capitalization rate at acquisition.
Acquisition Date: May 2023
Acquisition Price: $8,200,000
Down Payment: $4,800,000
Activity: Brokerage & Asset | Property Management
Pacific Business Park is an unrealized investment