One possible outcome for Adaptive

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Have been doing some musing on the future of Adaptive.

One likely outcome is that we keep doing exactly what we’re doing for, say, the next 30 years.

We’ve demonstrated the ability to renovate 100-150 units / year. So, if we did that, we’d end up with ownership stakes in private partnerships owning, say, 4,000 units, plus a management business taking in 2045’s equivalent of $6MM / year.

Not bad.

But I wonder if another outcome might be more interesting, both for us and for our investors: Rolling the whole portfolio into a publicly-traded REIT.

To my knowledge, there are no REITs with assets like ours. That’s because they tend to focus on so-called “institutional grade” assets like big office buildings, malls, huge multifamily complexes, etc.

I think there are now some (or will be soon) that focus on owning single family homes.

But I wonder if it would be cool to be the first REIT specializing in ownership of so-called “sub-institutional multifamily”, eg buildings with 5-30 units, ideally clustered in specific neighborhoods to give you economies of scale in the management.

Something to ponder, I guess.

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