For starters they have combined 30 years of experience in this space. They are also coming at this from a different perspective than many other investors with their experience in operations, investor relations and finance.

A Specific Group of Investors

Finally, they are targeting properties that will fit the needs of a select group of investors — family offices, high net worth individuals and some institutions looking for yield.

“We will marry up these investor groups with assets that meet their target returns and hold periods,” Buchanan told GlobeSt.com. Each group is different in that respect with family offices, for example, typically seeking investments that deliver 12% to 15% returns while institutions tend to seek out investments that deliver returns in the 9% range. High net-worth individuals, if they have a taste for opportunistic deals, might expect an investment delivering something in the high tweens.

Buchanan and Root have been cultivating prospective investors for the past year or so that they have been thinking about launching their own firm. They have a stable of go-to investors lined up and will bring in the appropriate investor early on in the deal to equitize the deal.

To be clear, they are not raising a discretionary fund to make investors, although that might be version 2.0 of Blackfin, Buchanan said.

Right now they are tracking deals up and down the East Coast and have offers out on ten properties in South Carolina, North Carolina, New Jersey and Washington, DC.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.

CLARENDON, VA–Two multifamily executives have left the comforts of established companies to form their own venture, which they are calling Blackfin Real Estate Investors. They are Andrew Buchanan, who spent the past seven years as president of Kettler and Doug Root, who was Greystar Investment Group's managing director for acquisitions and asset management operations in the Northeast and Mid-Atlantic regions for the past five years.

Now as Blackfin officially opens its doors, Buchanan's new role is managing partner of the firm he co-founded, overseeing joint-venture capital, finance and investor relations. Co-founder Root is managing partner overseeing acquisitions and asset management.

Their investment strategy is to target investor demand for class B rental properties and then add value to the properties to deliver a certain range of returns. If it sounds familiar, that is because there are a good number of multifamily investment shops that are already plying their expertise on exactly that play.

Buchanan and Root, though, believe what they bring to the table will make a difference to their investors.

For starters they have combined 30 years of experience in this space. They are also coming at this from a different perspective than many other investors with their experience in operations, investor relations and finance.

A Specific Group of Investors

Finally, they are targeting properties that will fit the needs of a select group of investors — family offices, high net worth individuals and some institutions looking for yield.

“We will marry up these investor groups with assets that meet their target returns and hold periods,” Buchanan told GlobeSt.com. Each group is different in that respect with family offices, for example, typically seeking investments that deliver 12% to 15% returns while institutions tend to seek out investments that deliver returns in the 9% range. High net-worth individuals, if they have a taste for opportunistic deals, might expect an investment delivering something in the high tweens.

Buchanan and Root have been cultivating prospective investors for the past year or so that they have been thinking about launching their own firm. They have a stable of go-to investors lined up and will bring in the appropriate investor early on in the deal to equitize the deal.

To be clear, they are not raising a discretionary fund to make investors, although that might be version 2.0 of Blackfin, Buchanan said.

Right now they are tracking deals up and down the East Coast and have offers out on ten properties in South Carolina, North Carolina, New Jersey and Washington, DC.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.