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. Since then, ACM has acquired a number of two- and three-story, garden style, Class C+ through A- apartment properties in Western U.S. markets that have had strong employment outlook and near-term supply constraints. Conservatively-leveraged with Fannie Mae, Freddie Mac of First Republic Bank financing, each property has had value-add potential via professional management, amenity enhancement and unit upgrades. Acquired at a discount to replacement cost, 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.
