BSPMT Investment Strategy
Investing for the long term in high quality multifamily assets in the United States.
Overview
- Long-term hold perspective with a durable and predictable income stream
- Target total return of 8%
- Current stabilized portfolio of 10 properties and 2,618 apartment units across five states
- BSP RE’s senior management team and nearly 70 employees bring significant real estate expertise
- The large scale and consistent presence of BSP’s originations team provides access to deal sourcing and the ability to negotiate relatively favorable terms
- Additional value created via UPREIT structure and transactions
Sleeve One, 80% Allocation: Equity Investments in Multifamily
Target total return: 5-7%
- Seeking stabilized properties with predictable cash flow
- View our acquisitions criteria page for property characteristics
Sleeve Two, 20% Allocation: Multifamily Alternative Investments
Target total return: 8-12%
- Mezzanine loans
- Preferred equity
- Value-add multifamily investments
Market Opportunity
- Multifamily demand remains resilient due to multiple demographic shifts
- BSP was active through COVID-19 and continued to see investing opportunities as less capitalized sponsors investors had to exit the market
- Real estate can provide a natural hedge against inflation and rising rate environment
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ANY INVESTMENT INVOLVES SIGNIFICANT RISKS, INCLUDING LOSS OF THE ENTIRE INVESTMENT. Targets are net of fees and expenses. There is no guarantee that the fund will meet its target total return or dividend.
The portfolio of assets held by BSPMT is valued quarterly and reviewed externally in compliance with the Institute for Portfolio Alternatives as described in the PPM. Views expressed are those of BSP. Data as of March 30, 2023.
The Company’s Property and Portfolio Valuation Guidelines provide that multifamily apartment communities will be appraised annually, alternating between full and desk top appraisals. Third party full appraisals (with a site visit) are conducted at least every two years for each individual property. A property that has undergone extensive upgrades that would have an impact on valuation may receive a full appraisal once the upgrades are substantially complete, even if such property was appraised less than two years prior to such upgrades. Appraisals are completed by an independent professional designated property appraiser selected according to and in conformance with Uniform Standards of Professional Appraisal Practice (“USPAP”) Guidelines and shall provide fair market value of the owned interest for financial reporting purposes. Additionally, each quarter, individual properties are valued internally using a variety of sources to glean information about real estate trends in the marketplace.
The portfolio of assets held by BSPMT is valued quarterly and reviewed externally in compliance with the Institute for Portfolio Alternatives (“IPA”) guidelines to support the Independent Directors Committee’s share price setting process. Once all of the properties have been valued at an individual asset level, the values for each property are summed to establish a portfolio value which is then reviewed again by management. Upon completion of the internal valuation, the process and portfolio valuation are reviewed externally by a third-party valuation expert.
After the portfolio’s value is calculated and reviewed, it is adjusted by the market value of debt, other assets and liabilities, and intangibles to come up with a net asset value, which is reviewed by management and a recommended Determined Share Value is presented to the Board. Management will recommend changes in increments rounded to the nearest $0.01. Each quarter, the Board receives and reviews supporting materials from management and then determines the Determined Share Value for the next three months.