Capitalizing on the Market Dislocation,
Developing Wealth Strategies

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Market Opportunity

"History doesn't repeat itself but it often rhymes" - Mark Twain

For the shrewd investor prepared to take advantage of where we are at in this current market cycle, there is poetry in motion in the multi-family sector. Over the next three years, nearly $2 trillion, (approximately 42% of the $4.7 trillion market) of commercial real estate loans are set to mature. This represents a significant challenge for investors who acquired commercial properties from 2020 to 2023 with short term or floating debt, as they face the daunting task of refinancing in an environment where interest rates have risen considerably, and lenders are tightening their underwriting standards. Notably, since March 2022, the federal funds rate has risen by 525 basis points, which has resulted in a temporary disconnect in the multifamily market presenting a unique investment opportunity to acquire property at a discount despite the multifamily markets robust fundamentals. To date, we have already seen indicators of this coming to bear as many funds have frozen distributions to their investors and are stockpiling cash.

Commercial Real Estate Loan Maturities by Property Type

Federal Funds Interest Rate Hikes - 525 Basis Point Increase Since March of 2021

Our investment thesis for the Community Transformation and Real Estate Income Fund (REIT) is straightforward: We aim to capitalize on the market dislocation and purchase value-add institutional quality properties at a discount in order to provide investors with immediate and consistent cash flow and superior risk-adjusted returns. Our strategy will involve acquiring these discounted, and sometimes distressed assets all cash, and then leveraging the funds buying power to secure attractive low leverage debt. We will then create value through physical renovations and employing effective property management strategies proven to increase occupancy and rental income. Investors will enjoy immediate cash flow, asset appreciation, wealth preservation, and long-term value creation in a resilient alternative asset class. Additionally, investors will benefit from leveraging a tax-advantaged asset that serves as a powerful hedge against inflation and diversification from volatile public markets.

AARE’s proven track record in fund management, stewardship and deep personal experience in the residential and multifamily sector places us in a prime position to capitalize on this opportunity. Our agents’ presence, aligned with the geographical distribution of transactions, covers 24 states that contribute to 80% of total transactions, enabling us to monitor and respond to market trends effectively. Our strong ties with high-performing operators seeking to top off their next fund significantly benefit our investment strategies. Our leadership team has successfully advised institutional investors for decades. Moreover, our nationwide presence, strong team, and long-standing relationships give us a unique advantage in navigating the complexities of the market to secure the best investments for our high net worth and institutional clients.

Ready to transform your investment portfolio?

Invest with AARE today and unlock the potential of purpose driven real estate investing.  Start your journey towards smarter, more impactful investing.

Begin by arranging a consultation with one of our representatives. During this session, we will provide an overview of our fund, address any questions you might have, and assess whether your investment objectives align with our fund’s vision, mission and purpose.

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Legal Disclosure

© Andrew Arroyo Real Estate Inc. dba AARE

Legal Disclaimer for AARE Investment Trust and Syndications

An investment in Andrew Arroyo Real Estate, Inc., a Delaware corporation (“AARE”) involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of AARE and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. AARE is subject to the same risks that all companies in its business, and all companies in the economy, are exposed to. These include risks relating to economic downturn, political and economic events and technological developments (such as hacking and the ability to prevent hacking). Additionally, early-stage companies are inherently more risky than developed companies. You should consider general risks as well as specific risks when deciding to invest. An investment in any of the real estate funds or syndications managed by AARE Investment Management, LLC, a Delaware LLC, and/or Andrew Arroyo Investments, LLC, a Registered Investment Advisor, and/or Andrew Arroyo Real Estate, Inc., a Delaware corporation, (collectively, “AARE”) involves risk. When offering Regulation D offerings, the offer and issuance of the Securities to the Subscriber is being made pursuant to the exemption from the registration provisions of the 1933 Act afforded by Section 4(2) or Section 4(6) of the 1933 Act and/or Rule 506 of Regulation D promulgated thereunder. When offering Regulation A offerings, AARE is “testing the waters” under the Securities Act of 1933, to gauge market demand from potential investors for an Offering under Tier II of Regulation A. This process allows companies to determine whether there may be interest in an eventual offering of its securities. AARE is not under any obligation to make an offering under Regulation A. No money or other consideration is being solicited, and if sent in response, it will not be accepted. No sales of securities will be made or commitment to purchase accepted until qualification of the offering statement by the Securities and Exchange Commission (the “Commission”) and approval of any other required government or regulatory agency. An indication of interest made by a prospective investor is non-binding and involves no obligation or commitment of any kind. No offer to buy securities can be accepted and no part of the purchase price can be received without an Offering Statement that has been qualified by the Commission. “Share” or “Stock” refers to common stock of AARE. This communication does not constitute a solicitation to purchase or an offer to sell securities. The information herein may contain forward-looking statements and information relating to, among other things, AARE’s business plan and strategy, and its industry. These forward-looking statements are based on the beliefs of, assumptions made by, and information currently available to AARE’s management. The words “estimate,” “project,” “believe,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements. These statements reflect management’s current views with respect to future events and are subject to risks and uncertainties that could cause the company’s actual results to differ materially from those contained in the forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. AARE does not undertake any obligation to revise or update these forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events.

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