About Allagash

The seeds of Allagash’s SFR+ strategy were sown during CEO Tony Barkan’s tenure at Seer Capital Management, which coincided with the establishment of the institutional SFR industry. Mr. Barkan initially determined that the largest SFR investment management franchises were basically executing a levered real estate strategy rather than creating efficient operating companies which could generate significant stable income. In contrast, Mr. Barkan worked from the beginning to establish Seer as a profitable and socially-responsible renter of housing to LMI households. In designing this model, Mr. Barkan crafted an investment process that he believes offers the highest probability of achieving both outsized IRRs with meaningful distributions for investors and positive social impact.

Allagash’s SFR+ offering is designed to expand and improve upon the SFR model Mr. Barkan employed at Seer. Instead of focusing entirely on single-family residences, Allagash SFR+ Impact Partners LP will also seek to purchase properties with buildings of 2-16 units, a cohort of housing that Allagash has termed as SFR+.   Allagash has chosen to focus the Partnership’s investment activities on purchasing and managing SFR+ Properties serving LMI households in secondary MSAs based upon extensive research (i) generally on the pricing dynamics within the market for residential rental housing throughout the United States and (ii) specifically on the seemingly intractable and expanding supply shortage in affordable rental housing for members of working-class communities throughout the United States. With respect to residential real estate markets generally, Allagash finds that the pricing and availability of LMI-affordable residential rental
properties, especially those comprised of smaller scale buildings with 1 to 16 units in which the majority of units have 2 or more bedrooms, is extremely attractive on both a relative and outright basis. With seemingly little competitive demand for these properties, they can be purchased with a cost basis that allows affordable LMI rents to be charged while still providing compelling projected return profiles for investors into such properties. Allagash believes these returns are significantly more attractive than those available from properties serving renters higher up the economic spectrum or from larger scale properties generally.

While the four steps of Allagash’s PERE investment process (Opportunistical Sourcing, Thoughtfully Add- Value, Efficient Management, and Strategic Sale) seem deceptively simple, each step involves rigorous planning, active decision-making, and continuous risk evaluation. Allagash believes that this process’ success relies upon having the right structure and the right team in place, which Allagash believes it has accomplished.

Because the Partnership’s capacity to generate compelling, stable returns and positive social impact arises from a single root cause: the scarcity of capital invested into LMI SFR+ housing. Allagash sees that these objectives are also complementary.

The Partnership invests capital and provides quality housing to LMI households to combat the affordable housing crisis; in turn, excess demand for the Partnership’s affordable housing product can provide outsized returns to investors.