Case Study: Implementing a Focused, Growth-oriented Geographic Strategy

Services:

• Portfolio rotation planning
• Exposure & concentration analysis
• Market opportunity assessment
• Competitive landscape analysis

In 2016, IRET (now Centerspace) pivoted from a multifaceted real estate company with a mix of commercial assets, to a single-purpose multifamily REIT. The Board retained RCLCO to facilitate a long-range strategic plan and evaluate its geographic concentration in the upper Midwest.

Approach

►RCLCO evaluated a variety of geographic footprints to assess what deployment represented the best opportunity for growth and would enable the company to improve its performance in line with its peer group.
►With the client team, we assessed investor appetite for a publically traded multifamily REIT focused on the Midwest
►Once the company decided on a target footprint, RCLCO screened the company’s current asset base and developed a disposition strategy for non-aligned properties.

Result

RCLCO’s analysis lead IRET (now Centerspace) to commit to investing in high-performing markets throughout the Central U.S. In line with the strategy, the company has pruned holdings in secondary Midwestern markets and expanded aggressively in high-growth regions including Denver.