The Ridgeview Report
Getting To Know Ridgeview Property Group
I'm Ben Michel, and I founded Ridgeview Property Group, a real estate investment company with a focus on acquiring multifamily assets. As the founder, I am tasked with charting the course for our investment strategy and setting the overall strategic direction of the firm. This includes identifying and pursuing new investment opportunities, as well as managing our portfolio to ensure it aligns with our long-term goals.
Professional Background & Investing Experience
Before founding Ridgeview, I spent 11 years as a Senior Associate with Michel Commercial Real Estate, where my focus was primarily on multifamily brokerage. Michel Commercial was founded by my father, Steve, and has brokered over $2 billion in multifamily sales since 1987. My responsibilities included pursuing new brokerage opportunities, conducting investment return and valuation analyses, negotiating contracts, coordinating due diligence, and conducting market analysis.
I began my investing career by purchasing and renovating duplexes. I then made my initial breakthrough in multifamily real estate by acquiring a 28-unit multifamily property in Jordan, MN for $5.1 million. Most recently, Ridgeview Property Group purchased a 24-unit property in Champlin, MN for $2.8 million.
Our Multifamily Investment Approach
At Ridgeview Property Group, the primary focus is on acquiring multifamily assets located in areas experiencing population and employer growth, commonly referred to as the "Path of Progress". My target acquisitions offer potential for value-add upgrades through interior renovation, amenity addition, and addressing management inefficiencies. I prioritize tax-advantaged acquisitions that are prudently financed, structured for cash flow, and held for the long term. I am involved in every phase of the acquisition and asset management processes to ensure attractive returns for my investors while safeguarding their capital.
My investment strategy is highly data-driven, and I carefully analyze population trends, income trends, home sale prices, and area rent growth to inform my decision-making. I know my product type and market well, giving me a leg up on competitors and allowing me to move quickly when the right opportunity presents itself.
I leverage the expertise of third-party property management companies to oversee my multifamily assets. I have stringent criteria for my management team and only partner with companies that have a proven track record of success. I maintain a hands-on approach and engage daily with the property management personnel to ensure that the monthly and year-to-date financial operating goals are met. My property management team and I prioritize maintaining sufficient liquidity to support operations and planned capital projects for each asset. I believe in proactively managing my assets to maximize returns for my investors. As such, I develop a comprehensive business plan for each acquisition, which outlines my strategy for enhancing the property's value through targeted upgrades and efficient management.
Once the business plan has been executed and the in-place debt has matured, I conduct a thorough analysis of the asset's performance and run various scenarios to determine the best course of action. Depending on market conditions and the property's financial performance, I may pursue a sale to realize the highest return for my investors. Alternatively, I may explore recapitalization options to free up equity or refinance the property to take advantage of favorable interest rates and hold the asset for the long term.
I stay abreast of market trends and conditions, which enables me to make informed decisions about the optimal exit strategy for each asset. I believe in remaining flexible and nimble, allowing myself to adapt to changing market conditions and capitalize on opportunities as they arise.
Market News
In the coming weeks, this section of my letter will feature a spotlight on the most notable and exciting news stories in the realm of Commercial Real Estate. I enjoy keeping a keen eye on the latest developments and trends in this dynamic industry and am eager to share my insight.
From the latest advancements in technology and sustainability to the shifting demands and preferences of tenants and investors, the commercial real estate landscape is constantly evolving. As such, staying up to date on the latest news and trends is essential for anyone involved in this industry.
Tips and Tricks
I am excited to conclude my weekly communication by sharing my knowledge and experience in the multifamily industry. In the upcoming weeks, I will be discussing my personal journey in the multifamily sector, along with key definitions commonly used in the industry.