MESH HOMES
Investing in Real Estate in Florida.
®
INVESTING
Mesh Homes is a private equity fund that invests in residential real estate in Miami, Florida.
The origin of the fund was a research project at the Business School of the University of Columbia in New York in 2011, which compared the real estate markets in Miami, Phoenix and Las Vegas - the three U.S. cities where home prices had contracted more than 50%.
The conclusion of the project was that the natural barriers surrounding Miami and the population growth in Florida - 75% above the U.S. average in the last 20 years - made Miami the most attractive location for real estate investments at that time.
As a result, Mesh Homes started purchasing its first residential real estate assets in Miami in 2012 and continued expanding its portfolio the following year. As of 2014, the market had recovered significantly and rental income yields in working-class neighborhoods dropped 30% in comparison to the initial purchases of 2012.
Unable to invest its excess liquidity at the expected return, Mesh Homes decided to purchase vacant land and to develop new housing units.
As of 2015, 60% of the units owned by the fund have been developed by Mesh Homes and 40% represent the initial purchases of 2012/13.
Going forward the percentage of new developments will outgrow the purchase of existing units as the fund has sufficient land to double the existing number of units.
DEVELOPING
Mesh Homes has acquired a critical skill, which is to develop multifamily buildings for low-and-medium income families at a below average cost.
Miami lacks new developments for low-to-medium income families as developers focus on building luxury condominium units for international investors, which of course generate a high margin on the short term, but neglect the long-term benefits of developing and holding an undersupplied asset class.
Although Mesh Homes has co-invested in the development of luxury single-family homes in the past, 95% of the funds invested in development projects have addressed the needs of low-income families.
The founders and staff of Mesh Homes share a clear, long-term perspective of how to capture the most value for investors across the stages of developing, leasing and selling assets.
OPPORTUNITIES
Mesh Homes is constantly searching for new investment and development opportunities in Southeast Florida and is open to co-investment projects with active or passive partners.
Please contact us if you would like to receive additional information on our projects.
PORTFOLIO
The opportunies to invest in Real Estate in Florida are vast and diverse
Although Mesh Homes has co-invested along with international buyers in various local ventures - from the construction of luxury single-family homes in Key Biscayne to the purchase of multifamily buildings in Little Havana - the most significant percentage of the fund is concentrated in multifamily buildings located in working-class neighborhoods, since these investments offer an attractive rental income yield above 10%combined with a high likelihood for future recapitalization.
The size fo the fund, which is expected to exceed 100 units by the end of 2016, is starting to generate significant economies of scale in the areas of property managment and maintenance and will continue to do so as Mesh Homes is not planning to sell any of its units in the medium-term.
The investment principle is to generate value by combining the local presence and management skills of the team of Mesh Homes with the access to international capital of foreign investors.
Please contact us if you would like to receive additional information about our portfolio and return rates.