Sweetbay Capital

Sweetbay focuses on multifamily real estate assets with <250 units and clear value-add potential in Virginia and the Carolinas.

​This segment is well-positioned to outperform other asset classes due to multiple secular tailwinds:

• ​​​Prolonged shortage of affordable housing with most new supply being expensive, luxury apartments
• ​Population and corporate migration to warmer states with lower tax rates, cheaper housing, and pro-business policies
• ​Declining affordability of home ownership due to rising prices and interest rates, which have outpaced wage growth
• Continued inflation in construction costs leading to higher replacement values
• ​Relatively limited institutional and sophisticated competition vs. larger properties

​Superior Risk-Adjusted Returns​

​At Sweetbay, we deliver superior risk-adjusted returns through a combination of forced appreciation and consistent levered free cash flow.

We acquire properties that have been mismanaged, poorly maintained, or under-utilized and reposition them through renovations and professional management in order to optimize Net Operating Income, contributing to higher values at exit and more free cash flow in the interim.

This approach can offer upside similar to corporate private equity with cash yields resembling those available in private credit, a balance that allows multifamily investors to weather economic downturns by holding assets for cash flow until capital market conditions are favorable for exit. It also offers tax benefits unmatched by any other asset class.

Each investment undergoes a rigorous, conservative underwriting process informed by our principals' institutional alternative asset management training and expertise.