Why OpenPath is Bullish on Apartment Complexes

We recently bought our second property in Colorado Springs, CO — so, obviously we’re excited about real estate in that market. But it’s not just Colorado Springs. There’s something bigger going on nationally. There is a reason OpenPath is excited about investing in apartment complexes in many parts of the country.

Before we dig into the bigger picture, let’s start by taking a closer look at Colorado Springs. A recent article from the local news outlet, The Gazette does a great job of detailing the market dynamics underpinning our confidence— primarily the shortage of apartment supply in the face of increasingly strong demand: Colorado Springs Apartment Rents Hit Another Record High

As the above article notes, there are a number of key trends that underscore the opportunity in owning apartment complexes. In short these include:

  • The population is growing faster than the housing supply
  • Tighter lending rules and college debt make buying a home difficult
  • The trend among younger people is to rent not own
  • An aging US population is looking to move into simpler, maintenance-free living

This dynamic is playing out across the country and it is further exacerbated in many cities as noted by this New York Times article. At OpenPath we see opportunities in these markets (like the property we recently bought in Jackson Hole, WY)

What’s more and as I’ve noted before, experts project these conditions will continue for decades, which provides further confidence for investing in multi-family real estate.

A Better Way.

Perhaps most encouraging is that at OpenPath we have developed a business philosophy and model that is much more compelling than the typical apartment complex ownership approach. At OpenPath we seek to improve the lives of our residents through our community development programs and our eco-friendly initiatives. In turn, these commitments to our residents and the planet yield enhanced returns for our investors.

OpenPath has a proven 10-year track record delivering 20%+ IRR (Our target is 15%). We are looking forward to the next 10 years. Interested in learning more? This short video does an excellent job of explaining what we’re all about.

Feel free to contact me directly at david at openpathinvestments.com to discuss.

A couple other posts that I think you will like:

My Next Google: A perspective from employee 75

The single best investment you can make for 2017

Real Estate’s Long Boom — And what’s in it for you.

Note: OpenPath investment opportunities are for accredited investors. I am not a CPA. It is always a good idea to consult your accountant to fully understand your individual tax situation.

Investor, Partner, Advisor. First Google Advertising Exec (2000–07), ex-Chicagoan. Now at OpenPath Investments & FullCycle Climate Partners

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store