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New York

AdLarem New York seeks to invest primarily in high-end luxury apartments in New York City that it believes will outperform the high-end luxury market over a long-term investment period.  We measure our performance by evaluating the total returns generated for our investments through long-term capital appreciation and current income. Our investment strategy focuses on units that could benefit from upgrades. We apply a thorough renovation program to each property, which includes adding fixtures and finishes, and creating layouts that most appropriately fit the unique lifestyle of high-end New York City renters.

AdLarem New York seeks investments that typically fall into the following five categories:

1. Sustainable Competitive Advantages

Investments in properties where the AdLarem team identifies a significant opportunity to exceed the rental yields of ultra-luxury properties that make up approximately 1 percent of the city’s rental market and can maintain or exceed current rental rates.

2. Value-Add & Opportunistic Equity

To create outsized returns by leveraging AdLarem’s differentiated insights, relationships, and execution capabilities.  This allows us to have a strong point of view about value, risks and potential rewards of each investment.

3. Volatility with Risk-Adjusted Upside

We have limited or no leverage on most of our properties, which allows us to invest in more volatile rental properties with a long-term risk-managed approach.

4. Timing

Luxury real estate tends to have steeper ups and downs than average buys. For this reason, we typically choose to buy within a market cycle when we see a price correction of around 30%.

5. Luxury Property Defined

A high price-tag alone won’t put a property into the luxury category. The property needs to feel unique and exclusive, which may include, but not be limited to, luxury activities like high-end shopping, dining, and the arts, as well as proximity to other luxury locations.

Investment Discipline — Sell Discipline

While our typical holding period spans a multi-year investment horizon, we nevertheless believe there are rational reasons to reduce or eliminate portfolio positions.  As a rule, we pare or exit investments based on many factors, including, but not limited to:

Adverse changes in long-term earnings power
Excessive valuation
A property is underperforming relative to industry peers
Opportunities to allocate capital to more compelling real estate investments