Insights

Preserving Impact in the Era of Inflation

Rising prices are putting pressure on working families and investors. There’s a way to help both.

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There’s no way around it: for the foreseeable future, inflation is here to stay.

With price levels rising at the fastest rates in forty years, Americans from all walks of life are grappling with the consequences.

The financial outlook is particularly challenging for working-class families, who face diminishing purchasing power on a range of essential goods and services, including and especially housing.Average monthly rents are up 14.1% year over year across the country, and as high 40% in parts of the country.

The sharp uptick in rents has further strained an already stretched rental market and shows no sign of slowing down anytime soon.

Meanwhile, investors and advisors are facing a different set of pressures as they look to protect capital and hedge against inflation.
 
Real estate, as a historically proven strategy during periods of high inflation, is increasingly attractive to investors.
 

This is particularly true for multifamily property investments, which have consistently generated the highest average absolute and risk-adjusted returns compared to any other property investment type.

Amidst all of these crosscurrents, where does ESG fit in?

Can investors honor commitments to better integrate impact considerations into their decisions? Or will trying times cause investors to deprioritize ESG to protect returns?


Revitate Cherry Tree believes that even in these inflationary times, investors can pursue both financial and social impact.


Our approach to focus on preserving and protecting the workforce housing that families are counting on in a way that still delivers compelling returns to our investors.
 

Our focus is on the Midwest, where the supply of attainable housing is not keeping pace with population and job growth. The resulting imbalance presents a unique opportunity for capable operators and investors to generate attractive returns while preserving necessary housing for everyday Americans.

We recently acquired $51M in multifamily properties in Kansas City, Missouri that speak to this strategy’s potential. Our focus with these assets will be the active preservation of attainable housing for the very families that have come to rely on them.

In deploying an institutional approach and sophistication to asset management, we focus on operational excellence and efficiencies to drive investor returns, thus preserving much-needed housing for our residents while also optimizing asset values.

We plan to pursue additional investments throughout the year, confident that even in these challenging times, investors can do well by doing good.

 

 

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