Deal Criteria

Acquisition & Development Criteria

TriArc evaluates hundreds of deals annually. Here's exactly what we're looking for — and what disqualifies a deal before we go further.

Acquisitions

Value-Add Acquisition Criteria

Market

Greater Houston MSA — core submarkets and emerging corridors only

Asset Type

Garden-style multifamily, 40–200 units, built 1970–2005

Price

$2M–$15M acquisition price (all-in)

Value-Add Potential

Minimum $100/unit/month rental upside post-renovation

Returns

Minimum 20% net IRR and 1.7x equity multiple target at acquisition

Hold Period

3–7 year target hold, with flexible exit strategies

Disqualifiers

What We Pass On

  • Outside Greater Houston MSA
  • Student housing, senior housing, or Section 8-only properties
  • Flood zone A (100-year floodplain) without significant mitigation
  • Environmental contamination or known remediation issues
  • Less than 40 units (insufficient scale for in-house operations)
  • Structural deficiencies requiring complete gut renovation
  • Deals where we can't achieve minimum return targets with conservative assumptions
  • Properties with existing tenant lawsuits or significant deferred litigation risk
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Ground-Up Development

Development Criteria

Select ground-up development opportunities where economics are compelling and the TriArc team can self-perform construction.

Location

In-fill Houston locations with demonstrated rental demand, minimal new competition, and strong employment access.

Scale

50–150 units. Efficient to build and manage with our in-house team. Large enough to achieve economies of scale.

Returns

Development spreads must justify higher risk: minimum 25% stabilized yield on cost and 22%+ net IRR at target hold period.