Quality AFFORDABLE housing for working families in America

INSTITUTIONALIZING

THE MISSING MIDDLE

Our MISSION:

To acquire, renovate, and manage Affordable Small-Format Multifamily ("SFM") residential rental properties in secondary metropolitan areas in the eastern half of the U.S. - institutionalizing a generally disregarded, under-managed, and undervalued real estate sector in order to:


* Produce superior returns while controlling risk for investors by capturing a

   first-mover opportunity.


* Provide safe, comfortable, affordable housing managed in a respectful,

   eliable, and responsive manner for moderate-income families.

A two-story red brick apartment building with black window frames, a black door, and green shrubs lining the walkway.
A family preparing a meal together in a bright kitchen, with pasta, salad, and fresh ingredients on the granite island.
A real estate agent with a clipboard speaks to three people in front of a brick apartment building.
A two-story house with white and dark red siding, a front porch, and a hedge in the front yard.

A Mission-DRIVEN Investment that does not sacrifice returns

Moderate-income (“MI”) households earn 60%-120% of area median income and make up 44% of U.S. households, the single largest and least supported U.S. demographic segment. More than half are rent cost-burdened, spending over 30% of their gross income on rent and utilities alone. With a savings rate approaching 0% and mounting consumer debt, most MI households cannot accumulate the downpayment needed to buy a home. They have become “Forever Renters.” 


Small-format multifamily (“SFM”), rental properties with 3 to 50 units, is the primary source of rental housing for MI households. SFM is not a new market. It is a long-established housing subsector with more than 14 million units and an estimated market value exceeding $2.5 trillion nationally. Yet it remains overlooked by institutional investors. Only the local individual investors who own most SFM properties seem to appreciate the stability and loyalty of its MI tenant base, characteristics that make the sector exceptionally resilient. Multifamily has generally been shown to hold value better and rebound faster than other real estate sectors in periods of economic and market stress. During the Global Financial Crisis, the single most challenging stress test in generations, multifamily serving moderate-income households even outperformed both the luxury and low-income multifamily segments.


One reason institutions have overlooked SFM is its undeserved reputation as difficult to own and manage. That reputation stems not from the asset but from how it has been run. The sector is owned primarily by smaller-scale, often undercapitalized individuals without the resources to provide institutional-quality management and comprehensive maintenance. The result is substandard housing that diminishes quality-of-life for already financially stressed families and strains tenant-landlord relationships. Poor management and maintenance also limit property price appreciation and deplete the supply of quality affordable homes.


As a result of being chronically under-managed and institutionally overlooked, SFM has been severely undervalued for years, especially in secondary markets where even capital from individual investors can be scarce. Allagash has recognized this as a significant opportunity. By accumulating SFM properties at attractive prices in stable markets and submarkets with highly inelastic demand, and then institutionalizing management and maintenance, Allagash can improve quality-of-life and stabilize affordable housing stock for MI households - all while positioning investors to pursue superior returns with controlled risk.

Benefiting from the virtuous cycle


Recognizing that the seemingly intractable and expanding shortage of rental housing affordable to moderate-income households is both a pressing social need and a significant investment opportunity, Founding CEO/Co-CIO Tony Barkan conceived Allagash PERE Investment Management with dual objectives: providing safe, comfortable, affordable housing for MI families and producing superior returns while controlling risk for investors.


Mr. Barkan also recognized that these two objectives should reinforce each other in a virtuous cycle. As return-seeking capital enables Allagash to acquire SFM properties and institutionalize their management, quality-of-life improves for moderate-income families. When these families become motivated to make Allagash units their long-term homes, tenant stability and loyalty should increase property values and investment returns. Those returns can then attract further investment, and Allagash can begin the cycle again.


As an emerging manager pursuing these objectives, Allagash seeks to achieve significant scale and create a new paradigm for mission-driven real estate investing.

the team

Allagash is led by five partners with almost 150 years of combined experience. The firm’s three Founding Co-Managing Principals, who have full responsibility for managing Allagash and its real estate investments, consult with the other two partners, the Heads of Construction Management and of Property Management, in directing the renovation and operation of the properties owned by the Fund and any separately managed accounts.

The Founding Co-Managing Principals

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Tony barkan

CEO/Co-CIO

38 years OF experience

After becoming a Founding Principal and Head of Real Estate at Seer Capital Management in 2008, designed and ran two programs from 2010-2015  leading directly to Allagash’s SFM strategy: the first purchased, renovated, and managed over 1,000   1-4-unit affordable rental homes across the southeast U.S. and the second became the second largest global investor into Commercial Mortgage-Backed Securities B-Pieces, effectively sponsoring over $20 billion in commercial property mortgages allowing Mr. Barkan to review and analyze hundreds of SFM properties. 

As Founder/CIO at Sailfish Investment Management ("S4") from 2005-2007, became an early identifier of the “Big Short” trade and migrated position to 100% short by EOY 2006.


From 1997-2015, built and managed numerous traditional and alternative investment platforms with almost $20 billion peak portfolio size and $2 billion peak investor equity.


From 1988-1997, served as a trader and trading desk manager of currencies, commodities, and mortgage-backed securities at Man Group, Goldman Sachs, and Salomon Brothers.

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simon russell

COO/CO-CIO

27 years OF experience

From 2019-2025, developed the Fund’s investment strategy with Tony Barkan, a friend and colleague for over 20 years, and then invested personally until contributing the portfolio to the Fund at Initial Closing.


Developed strong operational, community, and tenant relationships illustrating that the virtuous cycle paradigm can work for all stakeholders.


Began investing into commercial and residential real estate almost 30 years ago.


From 1993-2019, served in both client-facing and proprietary roles as an equity and equity derivatives trader, manager, and business builder for numerous banks and investment banks including Deutsche Bank, Rabobank, and Pali Capital.

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david puchi

CBDO

35 years OF experience

From 2003-2022, co-founded and co-managed Baceline Investments LLC, which purchases and manages necessity-based shopping centers across the U.S. Baceline recognized an undervalued and institutionally underinvested real estate sector performing a necessary function for  local communities and worked to institutionalize its portfolio, which is currently valued at $800 million.


Created and co-managed multiple private equity real estate partnerships and investment funds and has participated as a principal in over $1 billion of real estate transactions.


Primarily responsible for procuring over $500 million in capital for Baceline's investment vehicles.


From 1994-2003, founded a commercial real estate property management business as well as the predecessor investment entities to Baceline.


From 1987-1994, was a practicing commercial real estate attorney both at a law firm and within a regional bank.

A repeatable investment process specifically designed for SFM

Rigorous Research and

proactive sourcing


Allagash selects markets based on economic and social conditions, tenant performance and stability, and the available opportunity set, among other factors. Within each market, we then evaluate submarkets primarily, but not exclusively, for relative positioning and safety. Before sourcing any properties, we make multiple visits to each market, its submarkets, and specific property locations within them. We source properties through our partners’ wide network of local property owners, property managers, contractors, lenders, government agencies, and nonprofits, often identifying opportunities before they reach the broader market.



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Thoughtful Renovations


At purchase and regularly thereafter, Allagash’s construction management team, led by the Head of Construction Management, professionally assesses each property. Renovations address safety first, then comfort and, where feasible, energy-efficient upgrades and additional amenities, all to provide families with safe, comfortable long-term homes. To ensure renovations meet our specifications, we select and directly manage local contractors and subcontractors, many of whom we have worked with before.




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Respectful, Reliable, and Responsive   Property Management


Allagash selects regional and national third-party property management companies that we believe will best support the operations and maintenance of our portfolio in each market. Property managers follow our detailed and demanding Property Management Operation Manual. Allagash’s management team, led by the Head of Property Management, oversees all of each property manager’s work, including, in particular, how rents are set and how tenants are treated. Property managers are held accountable using property-level performance indicators, so that every tenant receives the respectful, reliable, and responsive service they should expect, regardless of the rent they pay. Our team also visits tenants periodically to make sure their actual experience reflects the reports we receive.


The first mover advantage

When a pre-institutional asset class gains acceptance among institutional investors, its pricing can rise significantly as a deeper pool of buyers competes for assets. "First Movers," investors who recognize these sectors and invest before prices rise, are positioned to benefit most. Single-family rental (“SFR”) housing followed this path in the early 2010s when institutional capital entered the sector, and while at Seer Capital Management, Allagash CEO/Co-CIO Tony Barkan was among the first institutional investors to commit capital to SFR. Allagash believes small-format multifamily now offers a significant first-mover opportunity for both high net worth and institutional investors.

Targeted Market Focus

A three-story apartment building with red brick and tan stucco siding, featuring small balconies and green landscaping.
We concentrate on small-format rental properties in secondary metro markets, unlocking value where institutional investors rarely operate.

Institutional-Grade Management

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Our team applies rigorous underwriting, professional renovations, and responsive management to enhance property performance and tenant satisfaction.

Social Impact with Strong Returns

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We maintain affordable rents for working families while delivering consistent, risk-adjusted returns through a disciplined investment approach.

Contact Allagash

Please contact us regarding any SFM properties that may be for sale

or for further information on investing into Allagash's Affordable SFM strategy.


David Puchi

Chief Business Development Officer

877-240-9607

dpuchi@allagashpere.com

Message Allagash

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