Strategy


Core/Light Value Add

Our core/light value add investment strategy is focused on achieving attractive cash-on-cash returns by acquiring stabilized, light-risk profile assets that are held for the long term. This investment strategy is driven by:

1. attractive financing terms currently available,
2. the ability to acquire stable cash-flowing assets at a basis below replacement cost, and
3. moderate improvements to the property to achieve greater upside over the mid-to-long term.

Value-Add

Our value-add investment strategy is focused on achieving high stabilized cash-on-cash and overall returns while protecting downside during stabilization. This investment philosophy focuses on buying out-of-favor, un-stabilized, and distressed assets at a basis that is well below replacement cost. Target assets must have excellent long-term potential and provide immediate opportunities to add value at the property-level. These type of investments require immediate capital investments that will generate minimal cash flow that provide attractive yields once fully stabilized. Returns are maximized by either refinancing with long-term debt and returning a significant portion of equity to investors, or exiting the investment.

Investment Criteria


Investment Targets

Andover targets undervalued real estate investments located in the Southeast and Midwest that benefit from a value-add strategy. These investments have operational inefficiencies but have strong sub-market underpinnings of population, employment, and income growth with high barriers to entry.

Investment Geography

Size: Typical investments are between $15,000,000 and $40,000,000.

Product Type: Multifamily, Student Housing, Office

Geography: Our primary focus is in sub-markets with strong local demand drivers in the States of Florida, Michigan, Indiana and Ohio.

Competitive Advantages


Deal Sourcing Ability

Andover has extensive long-standing relationships with owners, brokers, property managers, leasing agents, lenders, attorneys, and investors in each of our target markets that increases probability for “off-market” transactions.

Opportunistic Approach

Local owners still tend to dominate the ‹ $20 million segment of the market. Andover specializes in opportunistic real estate investments where value and outsized returns are created using best-in-class third party providers to a segment characterized by non-institutional competition with second-rate operating and management platforms.

Local Market Knowledge

The principals of Andover are intimately familiar with the surrounding target markets, having previously invested in or spent considerable time in these markets.

Investor Driven

Andover understands its reputation is based on performance and therefore carefully models its financial projections so that investor goals are reliably met.

Reliable Execution

Successful execution is key to establishing the credibility of a reputable firm. Andover’s managing partners diligently work toward a prompt and thorough process to ensure all timelines are met and promises are kept, ensuring long-term, mutually beneficial relationships.