Advenir
Firm Headquarters: Aventura (Miami), Florida
Date Founded: 1996
Investments to Date: 50-100
This Page was Updated January 2020
Investment Approach
INVESTMENT THESIS
Advenir believes the current economic environment offers a truly unique opportunity to acquire attractive multi-family assets and generate superior risk adjusted returns. Our business model is centered on a “preservation of capital” philosophy – driven by strong, stable cash flows with the potential for capital appreciation. We accomplish this by acquiring stabilized, income-producing multi-family assets in markets that have exhibited, and are projecting, healthy economies, positive employment growth, and in-migration.
INVESTMENT OVERVIEW
The investment is structured as a single purpose entity. Investor equity yields an 8% annual Preferred Return, and a 70% backend share of profits. All equity is returned prior to any backend sharing of cash flow. There is no Sponsor catch-up of any sort. All debt is sourced from Freddie Mac, as Advenir is a “Select Sponsor” of the lender. Acquisitions are very selective, in 2019 Advenir underwrote in excess of 400 investments to acquire 4.
Capital Raise Strategy
Strategy: Deal by Deal
Total Properties Under Management: 42 with a total of over 13,500 Units
Total Assets Under Management: $800 Million
Investments to Date: 50-100
Total Number of Investors: 400
Average Investment: TBD
% of Capital from Top 3 Investors: Less than 10%
Minimum Amount: $100,000
Financial Reporting Frequency to Investors: Monthly
Setup to accept charitable capital through the National Christian Foundation or other listing platforms? Yes, however there will be UBTI
Focused Geographic Regions of Investment:
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Is all of your activity in the US? Yes,
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Florida, Colorado, Texas, North Carolina, South Carolina, Alabama & Louisiana
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What countries outside of the US are you active in
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N/A
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Focused Industries of Investment:
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Multi Family – Existing
Company Differentiator:
Advenir is not a Fund which allows investor to pick and choose the multifamily investments they would like to participate in. Advenir’s interests are aligned with investors, as it does not charge extensive fees and relies upon overall profitability of the investment for its earnings. Advenir manages its own properties which allows for certainty of execution of the business plan. Advenir continues to invest in its people and technology in order to out-perform the market. Advenir has an investor Portal which maintains all investment results, cash flows, tax documents, and monthly financial reporting.
Investment Example:
The key to a successful investment is culture, leadership, people, proper model and underwriting, location of the asset, execution of the business plan, and economic environment. Typical investments have a four to seven-year investment strategy. Advenir acquires both value-add and new construction assets in lease-up, with a current target cash on cash return of 6% and an overall investor yield of 13% per annum. For a more detailed case study please visit the website at www.Advenir.net.
Previous or Active Portfolio PROPERTIES:
Advenir has owned and operated 78 apartment communities, 36 have been sold for an average return on invested equity of 1.99x. Our average hold for this group of assets is 4.5 years. We currently own 42 properties yielding a current cash flow of 8% or greater. The full portfolio can be viewed on our web site: www.advenir.net/portfolio
Leadership Team
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Cumulative Leadership Experience in Accredited Investing: 21-30 Years
Stephen Vecchitto | Managing Director
Stephen Vecchitto founded Advenir in 1996 and serves as the company’s Managing Director. He is responsible for creating the business plan for more than 13,000 units in Florida, Texas, Colorado and North Carolina and has oversight responsibility for acquisitions, financing and investor relations.
Prior to his work with Advenir, Stephen, a licensed CPA, founded VSM, LLC, a Hartford, Connecticut-based financial services firm. The firm specialized in litigation support, mergers and acquisitions, fraud, appraisals. Under his direction as Managing Partner, VSM grew to 40 professionals and became the fifth largest private firm in Hartford.
Stephen dedicates much of his spare time to serving in the business community. He is on the board of directors for Teach for America-Miami and a cornerstone member of Make-A-Wish Foundation in South Florida. Stephen was on the board of directors at both Deering Bay and the Greater Hartford Chamber of Commerce. He is also a former president of the Rocky Hill Chamber of Commerce, an organization that once named him Person of the Year.
Stephen graduated Suma Cum Laude in 1978 from Bentley University with a Bachelors of Science degree in Accounting.
David Vecchitto | Chief Executive Office
David Vecchitto is Chief Executive Office of Advenir Real Estate Management. As CEO, David is responsible for executing the business plan for the portfolio of properties, providing strategic direction to the management company, and developing our people and culture. David joined Advenir as Chief Financial Officer in April 2015 and values integrity, accuracy, and outstanding customer service.
Prior to joining Advenir David has had financial leadership positions in public accounting, captive insurance, risk management, not-for-profit, and agri-business. He has extensive international experience, with a passion for providing strategic direction and implementing growth and improvement initiatives to strengthen financial and organizational performance.
David volunteers his time working with national leaders to provide leadership and social development in the majority world. David has a Bachelor’s degree from Bentley University, a Master’s degree from Trinity International University, and is a Certified Public Accountant in the State of Connecticut.
ARNOLD FAZE | Director of Construction
Arnold Faze is Director of Construction for Advenir Living. He is responsible for the oversight and management of all value add construction and asset preservation projects across Advenir’s billion dollar plus portfolio of real estate holdings. Arnold joined the Advenir team in February 2018 with extensive experience in residential, hotel, and retail construction management.
Prior to joining Advenir, Arnold amassed over 18 years in construction project management experience working for Turnberry Construction in Las Vegas and Plaza Construction in Miami, FL. His work scopes ranged from ground up new build to full renovations of existing structures including five luxury high rise condominium towers, a large casino-resort hotel, an oceanfront hotel renovation, and a regional shopping center expansion. During his tenures, Arnold helped to build over $2 billion worth of assets including Turnberry Place Las Vegas, Turnberry Towers Las Vegas, 1 Hotel & Homes South Beach, and the new Aventura Mall expansion completed in November 2017. His drive and passion for achieving excellent results through collaborative teamwork will help fuel Advenir’s forward growth and success.
Arnold obtained his bachelor’s degree from Florida International University and leads his team with the mindset of exceeding customer expectations. His core values include integrity, fairness, leading by example, and living by the golden rule. He enjoys spending his free time enjoying the great outdoors with his wife and three children.
Spiritual Integration and Impact:
Faith Driven Investing can span a wide range from high yield to concessionary returns that have a higher level of spiritual integration. Having clear expectations of this philosophy is key for the movement. Each investment is unique and you might want to select multiples but if you had to choose one quadrant that best fits your groups spiritual integration and financial performance targets … What would it be?
The quadrant would be the middle, medium spiritual integration and market rate financial return. We are first driven by investment parameters to preserve equity and produce a reasonable risk adjusted return. Advenir’s culture is of a Christian base, driving from a biblical foundation. It becomes a weaving of leadership and financial goals.
Describe the Spiritual Integration Activities:
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Apartment Life – they are currently engaged on a number of Advenir properties with an expectation to be close to 100% integration. Advenir has been one of the original donors to start up the Florida Apartment Life division and we participate on both the Florida and National advisory councils.
Is Impact and Spiritual Integration Tracked?
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Yes – Apartment Life Tracks Success at the Individual Property Level
Are you partnered with any other organizations?
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Apartment Life
A lot of Investing Conversations look at Social Impact related to the United Nations Sustainable Development Goals. Is there one of these that most resonates with your organization?
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Gender equality, affordable and clean energy, quality education, sustainable communities, decent work and economic growth
WHY The FAITH DRIVEN INVESTOR?
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Why are you compelled to be certified and a part of the Faith Driven Investor Group?
Being certified compels us to continue our leadership in a faith-based direction.We hope to be an avenue for investments that yield a market risk return while maintaining a Christ-like business environment.
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Does the leadership align with the Unifying Principles on Faith Driven Investor and agree to the Code of Conduct? Yes
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Who nominated you to be listed on the FDI site? Pete Kelly, Apartment Life
AFFILIATIONS- Are you a part of any third party groups, affiliations that you would like to list here?
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Apartment Life
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National Multifamily Housing Council
Learn More
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Key Contact Name: Stephen L. Vecchitto
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Phone: 860.983.4600
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Email: Stephen@advenir.net
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Mailing Address: 17501 Biscayne Blvd, Ste 300, Aventura, FL 33160
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LinkedIn: www.linkedin.com/company/advenir-real-estate-management