Multifamily REIT Monogram Seeking Institutional Investors

Mark Alfieri, president, CEO and COO of Monogram Residential Trust (NYSE: MORE), joined REIT.com for a CEO Spotlight video interview at REITWorld 2015: NAREIT’s Annual Convention for All Things REIT at the Wynn Las Vegas.

Monogram, previously known as Behringer Harvard Multifamily REIT I, Inc., a public non-listed REIT, was formed in 2006. Last year, it changed its name to Monogram, transitioned to self-management and listed its shares on the New York Stock Exchange. It has assembled a portfolio that includes investments in 55 upscale multifamily properties, consisting of more than 15,000 apartment homes across 10 states.

Alfieri said the pace of activity hasn’t slowed.

“We’re in a whole different environment now,” he said. The company expands from a retail shareholder base of 49,000 investors to encompass a “totally new institutional investment base.”

Meanwhile, as Monogram works to recycle capital to core coastal markets, Alfieri said the company is finding stiff competition for assets. While Monogram does not compete in auctions because cap rates are too low, Alfieri said Monogram has had success in off-market transactions. He explained that Monogram works directly with developers and will continue to look for opportunities in coastal markets, dealing directly with developers through pre-sales.

Alfieri also commented that returns in the upscale multifamily sector are driven more by location than amenities.

“We’re very specific on our urban, very dense locations, and we think they will stand the test of time. I wish it was as easy as designing a property to get you the highest returns, but it all boils down to location,” he said.