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Investment Criteria
Convergence Capital Management employs a focused strategy under its acquisitions platform. Convergence pursues value-add multifamily opportunities with a primary geographic focus in the Western US & Texas.
In particular, the platform targets submarkets traditionally classified as "secondary" or "tertiary", but have strong fundamental tailwinds that Convergence believes will drive outperformance against national metrics. These markets are meticulously identified by Convergence through a top-down approach by utilizing its robust proprietary market-targeting algorithm.
On an asset-level basis, Convergence is primarily a deep value investor, giving distinct attention to properties with untapped revenue potential that are either mismanaged, operationally inefficient, debt distressed, or undercapitalized.
ACQUISITION
CRITERIA
Deal Size: $15,000,000 to $30,000,000
Units: 100 to 300 units
Price/Unit: Market specific
Vintage: Later than 1980 preferred
Market: Secondary or tertiary with healthy submarket or MSA fundamentals
Class: B & C properties
Hold Period: 3 to 10+ years
Target Returns: Stabilized yields in high single-digits or greater
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