The GSH Group

In today’s economy, renting is currently outpacing homeownership.

The strong demand for rental housing in many markets is shaped by demographic trends, lifestyle preferences, and affordability challenges, all of which multifamily properties are well-positioned to meet.

Younger generations, burdened by high housing costs and student debt, are increasingly opting to rent. Meanwhile, urbanization and changing demographics are further fueling the appeal of renting, thanks to its flexibility and affordability.

As a result, we expect the demand for rental housing to continue its ascending trajectory.

Furthermore, individuals unable to afford homeownership or Class-A rentals are likely to seek more affordable rental options, making multifamily affordable housing an appealing asset class for investors.

Want to learn more about multifamily investing in today’s economy?

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GSH Full-Cycle Case Study: Glengarry Park

Glengarry Park is a three-story, 300-unit apartment community centrally located in the heart of Oakland County, Michigan.

Initially purchased by GSH Group in Q4 of 2019 for $22.6 million, the property was sold at the end of June 2024 for $31.35 million, achieving an impressive IRR of over 18%.

The success of this investment is attributed to GSH’s robust value-add program and management optimization practices.

Over the 4.5 years of ownership, GSH invested $2.5 million in capital improvements, including unit upgrades, exterior work, and beautification of the property grounds. In September 2022, GSH refinanced the asset, returning 30% of the original equity to its investors.

These efforts resulted in a 26.8%, or $404,000, increase in NOI, and an average rental rate increase of 27.3% above the rates upon acquisition. Despite facing significant challenges from COVID-19 and inflation, Glengarry Park performed in line with the business plan, generating a deal-based IRR of slightly above 18%.