How you make money
Equity growth
Acquire below replacement cost, exit into institutional-caliber buyers
Cap rate expansion of 1.5-2% has pushed prices below levels not seen in years, with many buildings priced below replacement cost. APPA repositions, stabilizes, and then sells completed projects to institutional-caliber buyers. Realized JV returns have averaged a 2.31x equity multiple.
2x
Equity multiple
18%
Projected IRR
7 years
Hold period
Sale
Exit strategy
Cash flow
Durable rental cash flow from stabilized multifamily
The strategy targets a 12% preferred return, buying existing buildings at strong going-in cap rates and building new product that leases into tight, supply-constrained submarkets. Cash flow grows with natural turnover and rising rents.
6%
Annual cash yield
Quarterly
Distributions
12 mo
First distribution
Tax efficiency
Strategic tax benefits
Real estate may offer meaningful tax advantages, including depreciation, potential income sheltering, and long-term after-tax wealth efficiency. Consult your tax advisor.
100%
Bonus Depreciation (Y1)
How the deal works
APPA buys distressed and mispriced off-market multifamily, plus builds ground-up product, in supply-constrained markets. Sellers facing refinance risk and forced sales are pricing assets below replacement cost. APPA repositions or develops these assets, leasing into tight submarkets with durable rent growth, then sells completed projects to institutional-caliber buyers it builds relationships with.
West Coast Pricing Reset
Higher interest rates, cap-rate expansion, tighter lending standards, and loan maturity pressure have reset pricing across many West Coast multifamily markets. In select cases, owners are facing capital shortfalls, refinancing gaps, deferred maintenance, lease-up challenges, or debt levels that exceed current asset values. These conditions can create opportunities to acquire quality assets at a significantly improved basis, often below replacement cost, and step in where existing ownership may no longer have the capital or flexibility to execute.
Structural Housing Shortage
Major West Coast markets continue to face a persistent housing shortage driven by limited land, restrictive zoning, long entitlement timelines, high construction costs, and constrained new supply. At the same time, elevated home prices and higher mortgage rates have made homeownership less attainable, keeping more households in the rental market longer. This creates durable demand for well-located multifamily housing in supply-constrained urban and suburban infill markets.
Distress-Created Basis Advantage
Many attractive opportunities are emerging from building-level or ownership-level distress rather than weak long-term demand. These may include properties with deferred capital needs, operational inefficiencies, under-managed leasing, incomplete renovations, challenged ownership structures, or sellers who need liquidity. APPA targets assets where the purchase basis, location, and improvement plan allow the investment to benefit from existing rental demand while improving the property's performance over time.
Disciplined Owner-Led Execution
Since 2013, APPA-managed joint ventures have realized an average 41% IRR and 2.31x equity multiple with no realized losses. Past performance is not a guarantee of future results, but it reflects a disciplined approach to acquisition, development, operations, and risk management. APPA's vertically integrated platform controls each phase of the investment process, from sourcing and acquisition through construction, leasing, asset management, and disposition, allowing the team to respond quickly and protect execution in changing market conditions.
About the sponsor
$5B
investment experience
13 yrs
track record
15
deals completed
A vertically integrated multifamily investor and developer, founded 2013.
Aaron Marzwell
Founder & CEO
Founded APPA Real Estate (2013). Sets investment strategy across the portfolio.
Brian Rinsky
CFO & COO
Leads finance and operations. Investor-relations contact.
What you should know
What should I weigh?+
- Before investing, one should carefully evaluate whether the fund's objectives, risks, time horizon, and illiquidity are appropriate for their overall portfolio.
- Projected returns are based on underwriting assumptions and are not guaranteed. Actual results may vary materially, and investors should be prepared for the possibility of reduced returns or a total loss of invested capital.
- The strategy may benefit from future rent growth, operating improvements, favorable financing conditions, and potential cap rate compression, but none of these outcomes are assured. Market conditions, interest rates, tenant demand, expenses, and exit pricing may change over time.
- Development and repositioning strategies also carry execution risk. Construction costs, permitting timelines, labor availability, financing conditions, delivery schedules, and lease-up performance can all impact investment results, even when modular construction or other cost-control strategies are used.
- Investments in private real estate are generally illiquid and long-term in nature. Investors should not expect regular liquidity and should be comfortable holding their investment until a property refinance, sale, or other project-level exit occurs.
- The fund's focus on multifamily assets in supply-constrained West Coast markets may create opportunity, but it also exposes investors to local economic conditions, regulatory changes, rent control laws, entitlement requirements, insurance costs, taxes, and shifts in tenant demand.
- Investors should review the offering documents carefully and consult their tax, legal, and financial advisors before making an investment decision.
How long is the investment held?+
The fund targets a 7-to-10-year horizon, with an investment period of up to 7 years plus three one-year extensions at the manager's discretion.
What returns does the fund target?+
A 12% preferred return, an 18%+ blended project-level IRR, and a 6.5%+ target unlevered return on cost for new developments. All figures are underwritten projections, not guarantees.
What does the fund invest in?+
Ground-up and value-add multifamily development, transit-oriented communities, and distressed commercial sites in supply-constrained West Coast markets.
How does the profit-sharing waterfall work?+
Cash flow up to the 12% preferred return splits 75% to investors and 25% to APPA. Once an investor's capital is fully returned, remaining profit splits 50/50 between investors and APPA. There is no separate GP catch-up tier.
When can I expect my first distribution?+
Distributions are made quarterly, at exit, and upon the sale of any individual asset. The fund's first distribution is expected within about a year after committed capital is fully drawn.
Can I invest through an IRA or 401(k)?+
Yes, if your account is held with an IRS-approved custodian or trust company that permits alternative-asset investments, you can invest through a self-directed IRA or 401(k).
What tax benefits does this offering provide?+
APPA runs cost segregation studies on acquired and developed properties to accelerate depreciation, which can generate passive losses to help shield other passive income. Consult your tax advisor about your specific situation.
