Investor portal

Investment Criteria Characteristics

Servio Capital follows a data-driven approach to investment, leveraging strict acquisition criteria and key performance indicators to maximize returns while mitigating risk.

Value-Add Investments

(Repositioning & Enhancing Underutilized Properties)

  • Target Asset Types: Multifamily, RV parks, mixed-use, hospitality-to-residential conversions.
  • Target Markets: High-growth metros with strong rental demand.
  • Acquisition Cap Rate: 5.5% – 7.5%
  • Stabilized Yield on Cost: 7.5% – 9.5%
  • IRR (Internal Rate of Return): 15% – 20%
  • Equity Multiple: 1.8x – 2.5x over a 5-year hold.
  • Rent Growth Assumption: 3% – 5% annually post-renovation.
  • Value-Add Budget: $10K – $25K per unit for renovations.

Core/Core Plus Investments

(Stable, Income-Producing Assets with Minimal Risk)

  • Target Asset Types: Institutional-quality multifamily, stabilized RV parks, Class A/B properties in prime locations.
  • Target Markets: High-demand, low-vacancy secondary and tertiary markets.
  • Acquisition Cap Rate: 4.5% – 6.0%
  • Cash-on-Cash Return: 6% – 8%
  • IRR (10-Year Horizon): 10% – 14%
  • Occupancy Requirement: 90%+ at acquisition.
  • Debt Leverage: 50% – 65% LTV (Loan-to-Value).

Adaptive Reuse Projects

(Transforming Commercial Spaces into Residential or Mixed-Use)

  • Target Asset Types: Hotel-to-multifamily, office-to-apartment, industrial-to-mixed-use conversions.
  • Target Markets: Urban infill locations with housing shortages.
  • Acquisition Basis: 40% – 60% of replacement cost.
  • Post-Renovation Cap Rate: 6.5% – 8.5%
  • IRR (5-Year Hold): 18% – 25%
  • Construction Budget: $50K – $100K per unit.
  • Lease-Up Stabilization: 12 – 24 months.

Opportunistic Investments

(High-Yield, Short-Term Plays & Asset Repositioning)

  • Target Asset Types: Condo deconversions, land entitlements, distressed properties, short-term vacation rentals.
  • Target Markets: Undervalued or emerging real estate submarkets.
  • Acquisition Discount: 30%+ below market value.
  • Exit Strategy Timeline: 2 – 4 years.
  • IRR (Short-Term Horizon): 22% – 30%
  • Leverage: 65% – 75% LTV.
  • Disposition Strategy: Market sale, JV buyout, or stabilized refinancing.

Single-Family Lot Development

(Building Residential Communities for Growth Markets)

  • Target Asset Types: Entitled land, horizontal developments, build-for-rent (BFR) communities.
  • Target Markets: High-growth suburban and exurban areas with strong housing demand.
  • Lot Acquisition Cost: 10% – 20% of projected finished home value.
  • Horizontal Development Costs: $40K – $80K per lot.
  • Projected Sales Price: 3x – 5x lot development cost.
  • IRR (Land Development to Sale): 18% – 25%
  • Exit Strategy: Bulk sales to homebuilders, BFR model, or individual lot sales.

Additional Investment Considerations

  • Market Demographics: Population growth of 2%+ annually.
  • Job Growth: 2%+ year-over-year employment expansion.
  • Median Household Income: $60K+ in target areas.
  • Regulatory Environment: Favorable zoning, pro-development policies.

Capital Structure and Financing

  • Equity Contributions: 20% – 40% of total project cost.
  • Preferred Equity & Mezzanine Debt: Selectively used for opportunistic deals.
  • Debt Terms: Fixed or floating, 5- to 10-year terms.
Privacy Settings
We use cookies to enhance your experience while using our website. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. We also use content and scripts from third parties that may use tracking technologies. You can selectively provide your consent below to allow such third party embeds. For complete information about the cookies we use, data we collect and how we process them, please check our Privacy Policy
Youtube
Consent to display content from - Youtube
Vimeo
Consent to display content from - Vimeo
Google Maps
Consent to display content from - Google
Spotify
Consent to display content from - Spotify
Sound Cloud
Consent to display content from - Sound
SIGN UP NOW