Welcome To Grocapitus Investments
Over $100 Million Real Estate Owned
With our investors we own and operate over 1000 units across 6 states
+ 28 Million Equity Currently Invested
205 Investors Are Part Of Our Investment Family
+ Active Community Members In Our Multifamily Meetup (largest in the US)
Grocapitus Investments exists to find and present rock solid commercial real estate investments to our highly valued capital partners. In addition to producing attractive risk-adjusted returns for our investors, we strive to enhance the life of every tenant, team member, and individual that comes into contact with our business.
WHAT WE DO
We help people become financially free by investing in apartment buildings, student housing, and senior housing properties in high-quality markets nationwide. To accomplish this on a consistent basis, our rock star team executes our proprietary data-driven process for identifying, acquiring, managing, stabilizing, optimizing and divesting cash-flowing value-add Class B and C properties. We also build best in class new construction, multifamily, student housing, and senior housing projects.
Our Core Competencies
Find & Verify
To identify high quality properties with significant upside and a very favorable risk to reward ratio that meets our very strict standards, we employ our proprietary research-focused process for uncovering the best metros, sub-markets, neighborhoods and target properties.
Acquire & Stabilize
After uncovering an investment property that meets our stringent criteria, our Asset Managers and Principals spring into action and work hand in hand with our property team to acquire the asset. After purchase, if the property is a turnaround property team members work relentlessly to stabilize the property.
Add Value and Improve
With effective management and enhancement of the property we are able to improve occupancy rates and increase rent rates, resulting in increased property values and higher cash flow for happy investors.
3-5 Year Exit
We strive to divest the property and return capital and profits to investors in a 3-5 year time period. We take pride in communicating frequently with our investors, and provide updates on progress toward reaching the stated exit price for the property.
Would you like to invest with us?
How We Select Markets
1. Rent Growth
The 5 year rent growth forecast is one of our key indicators. We use a powerful proprietary method to calculate this value.
We look for metros and submarkets that are adding a significant number of high-paying jobs, resulting in a stable local economy.
3. Sales Trends
We continuously monitor local sales to compute cap rates and determine whether our cap rates are on target to reach our projections.
4. Supply And Demand
We monitor the supply of local units carefully to ensure it will not spike the vacancy rates and negatively impact rents.
How We Select Properties
Rent Growth Track Record
We ensure that the property’s submarket has a strong 12 month rent growth track record
Problem areas such as low performing staff, ineffective marketing, and poor curb appeal can be fixed quickly.
Local Growth Drivers
We love properties in areas experiencing local job growth drivers such as increasing corporate relocations or landmark construction
Only a small percentage of properties we underwrite meet our strict buying criteria. A property must have massive value add potential for us to move forward with an offer.
How We Work With Investors
Individual (Retail) Investors
Our investors can invest as little as $50,000 in most of our syndicated projects, and can typically be accredited or non-accredited. We work closely with our investors to understand their investment needs and the suitability of our syndicated investment projects to help them meet their goals.
Institutional Investors And Funds
We are able to offer institutional investors preferred equity in most of our projects, and work closely to match up institutional investors with appropriate opportunities.
We encourage Family Office principals to diversify and consider value-add real estatein properties that have upside and long-term appreciation potential.
High net worth individuals
After countless discussions with high net worth individuals we understand their investing philosophy and needs. The in-depth individualized process we have created is able to help them find, purchase, and manage properties that meet their specific risk, cash flow, and time needs.
Our Portfolio And Track Record
Art City Center is a beautiful new construction project in Springville, UT. The iconic mid-rise secure access residential facility has 41 three bedroom apartments, 4 offices, and 57 storage units. The project was completed in April 2018 and is in lease-up.
Woods of Ridgmar
235-unit stabilized property acquired in Ft. Worth, TX in Dec 2016. Focus on increasing rent & rehabbing 80 of the units to a higher spec. As of 2018, completed rehabs on most units and successfully raised rents and improved tenant base. Now issuing regular distributions.
Love Cove Resort
Marina and RV park acquired in Charlotte, NC in March 2016, and turned into high-end glamping resort. Installed 16 of 36 cabins. Daily rate and occupancy climbing continuously. Ordered remaining 20 cabins for delivery May 2018. The model works and we are looking to buy more resorts.
Collection of 2005-built brick Triplexes in a gated community in Hegeswich, IL. Purchased in 2013, value of portfolio is now up 30%+. The portfolio has been consistently cash flowing at over 16% annualized cash on cash, so the investor group has no plans to sell the portfolio.
The Point on Flamingo
192-unit C class apartment complex in Las Vegas purchased in May 2017. Borders UNLV campus on two sides, and will be transformed into purpose built student housing by July 2018. It will be run as full-service, furnished housing, rented by the bed to individual students. First 50 students now in.
Rails on Main
322 unit new construction purpose built student housing project next to the university in Buffalo, NY. First raise of $6.2MM used to buy land, do demo and land remediation and rezoning. Project was well timed as Buffalo economy surged in 2017. Starting construction Dec 2018, for April 2020 completion.
5 building, 60 unit property, purchased in 2018 as part of a 1031 exchange in an up and coming neighborhood that is very close to the Salt Lake City airport, which is undergoing a massive $3.6 Billion expansion. The plan is to rehab 50 of the 60 units during 2018 and 2019 to boost cash flow.
South Lake Side
6 Building, 237 unit project in Chicago. This project is well behind schedule for turnaround. The first property manager hired was not a good fit. We are back to 85% physical occupancy and 80% economic occupancy (up from 50%). Pushing hard to get to cash flow positive.
Many projects were purchased and operated under a separate brand that we were partners in.
Where We Have Properties
Featured Investment Opportunity
Rails on Main
30%+ projected annualized returns for early investors by taking advantage of special government incentives.
Phase 1 Raise $6.2 Million – CLOSED
Phase 2 – Opens Q2, 2018
Ready To Invest With Us?
Featured Learning Opportunities
NEW 2018 REAL ESTATE TRENDS
Neal Bawa delivers a power-packed talk about key trends you ABSOLUTELY MUST know about before you start planning your 2018 and beyond investments. This is a not-to-be missed investment presentation for analytical and opportunistic investors. The presentation is fast, fact-driven, and entertaining.
MULTIFAMILY SHOW AND TELL
Free In Person Training (San Jose, CA)
Would you like to see first hand exactly how we run our $100+ million real estate portfolio? You’ll see what we do and how we do it… research, purchasing, marketing, leasing, operations, staffing, processes… everything! Limited to 20 participants.
Upcoming Events and Announcements
Announcing our newest acquisition – a multifamily property in Las Vegas being converted into student housing
With 2 sides bordering the UNLV campus, the apartment complex will be transformed into a full-service furnished student housing project. It will be rented by the bed to individual students, who then share a 2br/2ba unit with each student having their own private suite. Student housing sure has changed!
The extensive cosmetic rehab of both interior and exterior will transform the buildings to look like purpose-built housing of 2017. As a result of the projected increase in revenues, this project is expected to provide a solid return from cash flow and the eventual profit upon sale.
Recent Podcast Interviews
MEET OUR MANAGEMENT TEAM
Neal Bawa brings extremely strong strategic and operational experience to Grocapitus Investments. He owns and manages an extensive real estate single family and multifamily portfolio in 7 U.S. States. Neal often speaks at Multifamily events, IRA events & meetups across the country. Nearly 2,000 students attend his multifamily seminar series each year and hundreds attend his Multifamily boot camps. He is the co-founder of the largest Multifamily Investing Meetup in the U.S. (BAMF), with 3000 members. He leads the company and is driving the syndication and acquisition of multifamily properties. Neal’s past experience includes 17 years of revenue (P&L) experience as the senior-most executive in a California education company with over 350 employees and $40MM in revenue.
- Investor Management
- Sales & Marketing
- Submarket Property Selection
- Leasing operations & metrics
- Technology & Infrastructure
Director, Marketing and Outreach
Partner, Student Housing
Partner, Hospitality Projects
Sr. Marketing Coordinator
Property Audits and Accounting