Artanis Capital focuses on optimizing manufactured housing assets that are performing but present opportunities for improvement through strategic asset management. We aim to boost operational efficiencies and enhance returns without major capital investment. Our strategy focuses on three key categories: turnaround opportunities, minimal value-add properties, and "coupon clipper" assets.

Turnaround Opportunities

For performing assets with operational inefficiencies, we apply best practices to optimize property management. This involves improving occupancy rates, reducing expenses, and increasing NOI without large-scale renovations. Enhancements like streamlining operations, upgrading infrastructure, and improving tenant services will lead to significant profitability improvements while maintaining stability.

Minimal Value-Add Properties

Our minimal value-add strategy targets properties requiring only minor enhancements to increase returns. Properties often have entry cap rates in the 6-8% range. We focus on marginal rent increases and operational adjustments, such as improving curb appeal or increasing energy efficiency, to boost rental income and profitability with minimal capital outlay.

"Coupon Clipper" Asset Management

For fully leased, stabilized properties, our focus is on maintaining consistent operations with little additional investment. These "coupon clipper" assets generate steady cash flow over time. We leverage agency loans through Fannie Mae and Freddie Mac to finance these properties at competitive rates, utilizing favorable LTV ratios to optimize cash flow and enhance investor distributions.

Acquisitions and Leverage

Artanis Capital’s acquisition strategy targets performing assets in markets with strong demographic trends and growth potential. We conduct rigorous underwriting to assess operational performance and optimization potential. Our team specializes in securing agency loans and structuring deals with LTV ratios between 65% and 75%. By leveraging debt strategically, we enhance returns while maintaining flexibility and reducing risk.

Marginal Rent Increases and Long-Term Stability

We implement marginal rent increases to maximize income without causing tenant turnover. This gradual approach keeps properties affordable, improving cash flow and asset value while ensuring long-term stability. Properties in this category are particularly attractive for generating reliable income with minimal risk of vacancy.

Distinctions in Economics and Management

Each performing asset type requires tailored management:

• Turnaround assets need more hands-on attention to resolve operational inefficiencies, focusing on boosting NOI through optimized management practices.

• Minimal value-add properties require selective improvements that deliver returns without major capital investment.

• Coupon clipper assets focus on stable returns, leveraging efficient management to maintain high occupancy rates and consistent cash flow.

By adapting our asset management strategy to each asset type, Artanis Capital unlocks value and maximizes long-term capital appreciation. This fine-tuning approach ensures that performing assets continue to deliver steady returns and grow in value for our investors.