What We Do
For the past six years, the housing downturn has been deeper, and the recovery weaker, than in any cycle since the 1970s. Having reached a turning point in 2012, the US Housing Market is in the midst of a recovery. Amongst the hardest hit cities during the downturn were areas such as Atlanta, Phoenix, areas of California and numerous cities throughout Florida and the rest of the Southeast. Through the downturn, many homeowners who were either overleveraged, became un-employed, or were adversely affected by other financial events beyond their control, lost their homes through foreclosure and were thrust from once being homeowners into the now ever-growing pool of renters.
The Prager Group, LLC (“Prager” or the “Company”) has been set up to capitalize on the opportunity to acquire single family homes at historically low prices, rent out, and operate them with an institutional discipline that generates a cash flow stream and, perhaps more importantly, the ability to participate in home price appreciation (HPA) that by many accounts is expected to range between 4% and 6% per year for at least the next 5 years.
The Company has built a unique platform and for the past seven (7) plus years has demonstrated success in the Affordable Housing Own-to-Rent Sector. Through its incubator fund “Southeastern Residential Opportunity Fund” (or “SROF”), the Company’s own internal accounts, and other separately managed accounts (“SMAs”), more than 2200 properties in the Atlanta MSA, Macon, GA, Memphis, TN and Northern Mississippi areas. With a 90%+ historical average occupancy rate, the Company has been able to effectively scale its platform and generate unlevered low double digit returns while paying a consistent 8.0 – 10.0% unlevered preferred return to its investors.
As a result of its strategic focus, the Company has also developed deep relationships with Special Servicers, GSEs, Financial Institutions and some of the largest HUD preferred Non-Profit Groups in the country. The development of these relationships has allowed Prager to leverage their Affordable Housing initiative along side that of other partners seeking foreclosure prevention, foreclosure transition, neighborhood stabilization, and other initiatives to support low-to-moderate income housing. As a result, the Company is in a unique position to capitalize upon significant off-market opportunities to acquire bulk portfolios at significant discounts and continue to build a sizeable portfolio of single family homes for rent while delivering attractive returns that outperform other leading market participants in the SFR buy-to-rent sector.