People ask us, all the time, what’s the difference between Fund I, and Fund II? Fund I was a $15 million fund. Fund II is a $50 million fund. The focus on Fund II, the main principles is the same.
We’re still buying value-add properties in core markets, but what we’re doing now is we’re buying larger properties. Instead of a 30-unit building, we’re buying a 150-unit building.
What we’ve found today is, in order to achieve the highest rents in the market, a lot of tenants look for amenities in their building. When you have older buildings that are 20 or 30 units, the smaller deals that we used to buy, they don’t have any space for amenity packages.
The larger deals that we buy now that Fund II will focus on has amenities that we’re able to go in and renovate. It has pools that were built 20 years ago that doesn’t have anything else other than a pool. It has a gym that has an old treadmill.
We’ll go in, we’ll buy new technology for the gyms, in terms of a treadmill with TVs. We’ll buy new bikes, where you basically can cycle with watching your friends at the same time. A Peloton system … We’ll add a new TV, and lounge chairs to the pool and a barbecue grill area, so you can invite your friends. It becomes your community instead of just your unit that you rent.