Consumer Capital Partners to Invest in Apartments Nationwide
- Apr 01, 2013
Denver—When people think of Smashburger, most think of the nation’s fastest growing better burger chain. But Smashburger’s owner, Consumer Capital Partners (CCP), is looking beyond burgers to the multifamily industry.
CCP announced in late March it has entered into a partnership with leading private equity firm FrontRange Capital Partners LLC to diversify into ownership of 35,000 apartment units across the United States. FrontRange Capital is a firm that specializes in owning, managing and repositioning apartment communities.
“After many years of increasing home ownership rates, a few years ago trends started shifting in the other direction,” Dennis P. Smythe, CFO of Concept Consulting LLC, part of the CCP group of companies, tells MHN. “We believe that a desire to live closer to core urban areas, we well as the attractiveness and flexibility of renting compared to owning a home with a mortgage are contributing factors.”
Adds Rick Schaden, founder of CCP: “We liked the opportunity we saw to make an aggressive investment into multifamily housing. There is an undeniable trend showing people moving from homes into apartments. Many times it’s economically driven, but we’re also seeing a demand to rent space in urban areas where people are closer to the core of city life. Whenever we can be ahead of the curve and invest in tomorrow’s demand, we will be there.”
The multifamily sector offers the opportunity to earn compelling risk-adjusted returns given the favorable demographics and longer-term home ownership trends, adds David Robertson, CEO of FrontRange Capital Partners.
“We are excited to partner with CCP on this attractive investment, and look forward to working together on future opportunities,” he adds.
An investment of this magnitude must have strong upfront alignment around the business plan, Smythe says. CCP shares with FrontRange Capital similar vision about how to invest in multifamily to create value for all concerned.
Consumer Capital Partners’ investment has provided capital that will allow the partnership to acquire the multifamily properties, Smythe says.
“In many cases, the capital has been or will be used to improve the properties’ common areas and/or apartment units themselves, ultimately enhancing the experience for the renters,” he adds.