Purchase Correctly

Axiom seeks off-market acquisitions where possible, sourced directly from our network of property managers, lenders and intermediaries. We avoid commodity assets and focus on buying in markets with strong population growth and job formation. We prefer locations with non-cyclical anchors such as universities, hospitals and state capitals to provide stability during downturns.

Structure Appropriately

Axiom works to put in place the optimal capital structure for each transaction-securing the most favorable terms and the greatest flexibility. Depending on the type of investment, we utilize a variety of financing sources including agency debt-Fannie Mae and Freddie Mac, Commercial Banks, Insurance Companies and private lenders. A typical capital structure may include a 3, 5, 7 or 10 year term, 30 year amortization with several years of interest only. The amount of leverage varies depending on the property, location and strategy but is generally around 60% to 75%. Given the stable nature of apartment cash flow, this amount of leverage is appropriate.

Manage Intensively

Axiom employs its internal property management company (Axiom Property Management) and maintenance personnel. We avoid outsourcing this critical role to third party providers. We eliminate wasteful and expensive property management practices by using our management. Examples include: trained HVAC and certified electricians on staff, installation of individual water meters and in house landscaping. We put in place a plan that incentivizes managers to increase NOI.

Exit Opportunistically

Depending on the type of investment, the holding period for an Axiom transaction will range from 3 years on the low end to as long as 10 years. Given the annual cash flows and tax advanteged nature of these investments, many investors prefer longer hold periods. Axiom will, however, exit investments when we believe we have extracted maximum value-depending on several variables such as stabilization and local market dynamics. A "realization" may be through a sale or refinancing of the property.