CRE Start-Up Vision & Beyond Plans $250M Multifamily Investment in Midwest

It isn’t only the Sunbelt region attracting apartment capital. You can now add Cincinnati, Columbus, Dayton, Lexington and Louisville to the list of markets that are garnering investor attention. CRE start-up Vision & Beyond Capital Investment is targeting these Midwest markets with plans to invest $250 million over the next several years.

These cities, according to the firm’s CEO Stas Grinberg, have attractive growth dynamics, including population growth, job growth and favorable cost of living. In Columbus, Ohio, for example, there are 50 people moving to the city each day. In addition to the strong demand drivers, Grinberg also says that these are business-friendly cities. “We invest all over the Midwest. I like that the regulatory environment is favoring developers, and I am not starting in a market where I am competing with giants without any voice or influence,” he tells GlobeSt.com.

In the next three years, Grinberg plans to grow the portfolio to 100,000 units. To accomplish that goal, the company is focusing on scale. “I am selling all of my small portfolio or properties below 60 units,” says Grinberg. “As I grow, I want properties with more control that have maintenance and management onsite. We are also expanding the vertical integration of the company.” That includes in-house management, maintenance and material suppliers, which Grinberg says will help to drive down costs.

Next year, he also plans to expand his market reach out to some popular growth markets, like Houston and San Antonio. He is already planning to acquire five to six properties in those cities.

In terms of property type, the firm remains focused on workforce housing, and the pandemic has only reaffirmed the strategy. During the pandemic, the demand for workforce housing accelerated, and Grinberg says that rising construction costs have hampered new supply from coming into the space. “There has been rising construction costs, and it is not possible to build affordable housing,” he says. “Every unit is costing at least $250,000 for a developer, so the ability to change $800 in rent does not exist. You have to stack 18 layers of tax credits to make the deal work.”

While the construction issues are exacerbating the problem, for investors and owners of workforce housing, demand is tremendous. “That is good for us. Investment in this asset class is becoming less risky because the demand is growing,” adds Grinberg.

Next year, the firm is also planning to augment amenities in its properties with community-based services. “I also want to continue to provide additional services to the community,” says Grinberg. “We are trying to evolve and develop our other services to improve the quality of life of the tenants.”