JF3847: Fund Structure Flexibility, Multifamily Acquisition Strategy, & Strategic Market Selection ft. Percy Nikora
Episode description
On this episode of the Best Ever CRE Show, Joe Fairless interviews Percy Nikora, co-founder of Penn Capital, which manages approximately $230 million in multifamily assets. Percy shares insights on their hybrid capital-raising approach, offering both fund and individual deal investment options to accommodate different investor preferences. He explains how they've executed 12 syndications and recently launched a $50 million fund that has already acquired three properties with about $20 million in equity. Percy discusses their market selection criteria, focusing on areas with strong job and population growth like Huntsville, Alabama and strategic locations in North Carolina. He candidly addresses challenges they've faced, including unexpected property tax increases and floating rate debt in a challenging market, while also sharing their impressive track record of 23.5% average IRR to LPs across their five property exits. Throughout the conversation, Percy offers valuable insights on working with institutional investors, including structuring partnerships with major check-writers and maintaining the detailed reporting relationships these investors expect.
- Managing Partner at Penn Capital
- Based in: Philadelphia, PA
- Say hi to them at:
- www.penncapitalgroup.com
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