Decoupling

By investing in Multi-Family rental properties through our funds, investors may enjoy a reliable and stable source of passive income that is largely immune to the volatile fluctuations of the stock market.​

We have observed that the correlation between Multi-Family rental prices and stock prices is minimal, with a correlation coefficient of 0.05. A correlation coefficient of zero indicates that changes in stock prices have no predictable effect on single-family rental prices. This lack of correlation with the stock market presents an exceptional opportunity for investors to diversify their portfolio and reduce overall investment risk.

More than ever, investing in tangible assets remains an important diversification and the best way to carry value over time.​

Market advantages​

We believe that our investment approach in Multi-Family rental properties offers investors a distinct advantage in that it is independent of stock market fluctuations. Through our investment funds, investors can participate in entry-level housing without the need for hands-on involvement in property management.​

Historical Resilience​

Multi-Family rental properties offer significant benefits to investors, particularly in times of economic uncertainty. Even during recessions, rental prices for these properties have remained strong, providing a reliable source of cash flow. New York City’s resilience in the face of economic downturns has proven that investors can continue to generate consistent returns on their investments, while waiting for the right opportunity to sell when property values increase.

Free Market

The Multi-Family brownstones market is a key asset when speaking of stability and diversification. This is a free market compared to Condominium and Co-Op as rents are not stabilized (below 5 units). Given the cap when renting, condominium and Co-Op remain less attractive in term of rentability.

Appreciation

Since COVID, we have seen an exodus from the City to the other boroughs, especially Brooklyn. Therefore, brownstones have become a more valuable asset as more and more people are looking for properties containing green spaces. We anticipate that this trend will remain strong in the future as it has been since the pandemic with the new generation arriving on the market. This luxury real estate asset evolved with an average price outperforming other properties types over time.

Low Vacancy

Brownstones is a prized housing by people from New York with a residential vacancy lower than other properties especially recently when it reached a low of 2.69% in December 2022, a rebound from the high of 5.04% in 2020.

Liquidity

Brownstones outperformed real estate sales across the nation especially in Brooklyn and Queens.​

Tax Efficient

Brownstones Tax class of either 2A or 2B, which are tax-class protected and limits increases in real estate taxes to no more than 8% a year. 

Defensive Asset

The stability of this investment has been proven for several years now and it remains a very efficient defensive diversification, especially given the low correlation between rental prices and stock.