The condition of many of these older apartment assets has deteriorated dramatically. However, many of these properties are in exceptional locations and markets, thus creating an opportunity for Green Leaf Partners and our investment partners. Typically upon acquisition we look to make many standard renovations including: painting, replacing weathered exterior woodwork, making landscaping upgrades, renovating and upgrading the clubhouse and remodeling the interiors of the units. However, we also take on improvements most others have ignored: energy efficiency. One of the biggest inefficiencies with these dated properties is energy and water consumption. Green Leaf can dramatically improve the economics of these older assets by addressing their energy and water consumption problems.

Attractive Market Dynamics:
Other attractive dynamics exist in this market opportunity. Demand is growing for housing for the working class due to increased immigration and Echo Boomers entering their apartment renting years. Many of these Echo Boomers would have been home owners several years ago but will now likely be renters for several more years due to a tighter lending environment. These factors create additional demand for an already-overburdened apartment stock.

Additionally, Institutional investors have begun to look more at "B" class assets because cap rates on "B" level apartment product are attractive compared to the cap rates on "A" class assets. Institutional investors are being forced to look at these "B" assets in an effort to generate a higher yield. We plan to position our assets for these types of buyers. For these reasons converting "C" apartment assets in good locations into "B" class apartments is an attractive investment strategy for the foreseeable future.