GlobeSt.com: Are you searching for properties across the entire US, or in a specific geographic area?

Cunningham: We are focused on the major markets in the Southeast, primarily those metropolitan areas with a population of 700,000 or greater, so cities like Atlanta, Tampa, Orlando, Charlotte, Nashville, New Orleans, Birmingham and Greenville.

GlobeSt.com: What are you generally looking for in a property?

Cunningham: Coming out of the downturn, we exclusively targeted 1970s and '80s built properties in great locations. These properties were physically and operationally distressed and in need of full renovations.

At that time, we could acquire assets at an attractive basis which enabled us to invest the necessary capital, typically $20,000 per unit or greater, to renovate, rebrand and reposition the property in the marketplace. Now demand for that asset class is strong and pricing has increased to a level where we find it difficult to make the numbers pencil out. Therefore, we have adjusted our investment parameters and are looking to acquire newer properties that can benefit from a lighter value-add program.

These assets will have nine-foot ceilings and attractive amenities, but there will be something that places them outside the box for many investors. We are also financing these assets with longer term fixed rate debt, usually via the agencies, and planning to hold for 7-10 years rather than the 3-5 year hold period for our earlier acquisitions.

One factor will make investment more challenging in 2017. Read about it here. Meanwhile, CBRE is making some interesting predictions on Atlanta's hotel, retail and multifamily markets.

ATLANTA—Myles Cunningham was hired last year as the first-ever vice president of Acquisitions at Atlanta-based Audubon, which specializes in acquiring and managing multifamily properties throughout the Southeast. Since then, he's been scouring the region for multifamily projects—evaluating hundreds of properties to find the few that will make the cut – using what he believes contrarian strategy of multifamily buying.

GlobeSt.com caught up with Cunningham to find out where he's searching and the types of products he finds most interesting in today's market in part one of this exclusive interview. Stay tuned for part two, in which he will discuss specific examples and differentiators.

GlobeSt.com: You were hired last year as Audubon Communities' first-ever VP of Acquisitions. Tell us about your new role?

Cunningham: My job is to oversee all acquisition activities, meaning I identify new multifamily investment opportunities, coordinate capital markets activities and manage investor relationships. Basically, I'm the one who finds, analyzes and recommends properties for purchase to our investment committee.

GlobeSt.com: Are you searching for properties across the entire US, or in a specific geographic area?

Cunningham: We are focused on the major markets in the Southeast, primarily those metropolitan areas with a population of 700,000 or greater, so cities like Atlanta, Tampa, Orlando, Charlotte, Nashville, New Orleans, Birmingham and Greenville.

GlobeSt.com: What are you generally looking for in a property?

Cunningham: Coming out of the downturn, we exclusively targeted 1970s and '80s built properties in great locations. These properties were physically and operationally distressed and in need of full renovations.

At that time, we could acquire assets at an attractive basis which enabled us to invest the necessary capital, typically $20,000 per unit or greater, to renovate, rebrand and reposition the property in the marketplace. Now demand for that asset class is strong and pricing has increased to a level where we find it difficult to make the numbers pencil out. Therefore, we have adjusted our investment parameters and are looking to acquire newer properties that can benefit from a lighter value-add program.

These assets will have nine-foot ceilings and attractive amenities, but there will be something that places them outside the box for many investors. We are also financing these assets with longer term fixed rate debt, usually via the agencies, and planning to hold for 7-10 years rather than the 3-5 year hold period for our earlier acquisitions.

One factor will make investment more challenging in 2017. Read about it here. Meanwhile, CBRE is making some interesting predictions on Atlanta's hotel, retail and multifamily markets.