Hands-On Investments
Arx Ventures is a real estate private equity firm specializing in value-add and opportunistic real estate investments. Currently active in the Northeastern and Mid-Atlantic United States, Arx distinguishes itself from other firms with its hands-on approach.
Many real estate PE firms lack the “boots-on-the-ground” expertise to properly evaluate and price a project’s risks. Arx’s principals have decades of experience in land acquisition, entitlements and permitting, finance, development, construction and sales. This helps Arx identify high-yielding opportunities that have been overlooked, and avoid expensive bid situations.
We especially like recession-resistant investments. Our largest current investment is in manufactured housing, which is a critical part of meeting the increasing demand for affordable housing, and has the lowest correlation to economic ups and downs versus other types of real estate. Opportunistic investments include residential lot entitlements and development and opportunity zone development.
The Arx Difference
a message from our founder
WE FOCUS ON THREE REAL ESTATE CATEGORIES
-
Manufactured housing is the best unsubsidized solution to the housing affordability crisis. It is also the most tax-efficient real estate investment due to most of the asset's value being short-lived (15-year versus 27.5 or 39-year property). Disaggregated ownership and local zoning laws have kept this industry in the 20th century, creating opportunities for operators who can acquire and consolidate management of multiple properties in a geographic region. Scale enables the company to leverage the latest technological solutions for rent collection and tenant communication, and reduce operating costs across a portfolio of properties.
-
The 2008 financial crisis accelerated national builders' shift from balance sheet developers to "just-in-time" manufacturers. As a greater share of the housing market is controlled by these large builders, they increasingly rely on developers to secure municipal approvals and construct horizontal improvements. Arx Capital works with these builders and its partners to entitle land, finance and build roads and utilities, and sell ready-to-build lots.
-
Prices for public securities move up and down based on the flow of readily available, publicly disclosed information. Because of this, it is difficult to "beat the market" over any extended period. Real estate, however, is a less-liquid market in which accurate information is harder to obtain. This "information assymetry" enables astute and disciplined investors to earn above-market returns throughout economic cycles. The Arx team leverages its expertise and relationships to identify and secure an asset or pool of assets when it believes the lack of available information makes an opportunity compelling.
