My Strategy
Timothy F. Scherer has been in the apartment business since 1989. In 2009, he founded Apartment Capital Management (“ACM”) and is the managing member.
ACM has acquired a number of two- and three-story, garden style apartment properties in Western U.S. markets that have had strong employment outlook and near-term supply constraints.
Conservatively-leveraged mainly with Fannie Mae and Freddie Mac financing, each property was acquired at a discount to replacement cost and had value-add potential via professional management, amenity enhancement and unit upgrades.
ACM’s renovated apartments rent at a lower price point than Class A product, providing value to tenants and insulating operations from competition associated with new construction.
Mr. Scherer is a hands-on investor and is active throughout the acquisition and ownership of each property. ACM investors have elected to be passive with regard to the day-to-day business but control major decisions. ACM investors are receiving an average 13% cash-on-cash return on investment. While investors would have an average Internal Rate of Return in excess of 30% if all properties were sold today, the business plan is to hold long-term, conservatively refinance and reinvest the proceeds.
