Our Underwriting Process

Unlike strategies that rely solely on external market appreciation, Greenlite underwrites each investment based on tangible value creation. We evaluate the potential for physical improvements, operational efficiencies, and rent growth derived from execution, not speculation. This disciplined approach allows us to underwrite with precision, price risk appropriately, and deliver durable returns across market cycles.

Once a property is identified, Greenlite conducts a comprehensive review of both its physical condition and operational performance. This includes:

• Capital Needs Assessment: Detailed inspections to identify deferred maintenance, code compliance issues, and infrastructure or system replacements (e.g., HVAC, roofing, plumbing).

• Operational Review: Analysis of rent rolls, leases, turnover rates, and expense trends to identify inefficiencies and opportunities for Net Operating Income (NOI) improvement.

• Rent Delta Evaluation: Measuring the spread between in-place rents and achievable post-renovation rents is central to our underwriting model. We do not proceed unless a clear path to revenue growth is supported by market data.

From this review, we formulate a tailored repositioning plan aligned with the property’s specific condition, tenant base, and submarket dynamics.

Greenlite builds detailed financial models for every project to forecast cash flow and performance under multiple scenarios. These models include:

• Equity-Level Return Metrics: Internal Rate of Return (IRR), equity multiple, and total return—benchmarked against the risk profile of each deal.

• Debt-Level Metrics: Debt Service Coverage Ratio (DSCR) and Debt Yield are stress-tested to ensure compliance with lender thresholds and to avoid capital structure risk.

• Scenario Analysis: Stress testing under various leasing velocities, rent growth assumptions, and cost structures enables us to plan for contingencies and protect downside exposure.

Greenlite evaluates more than just financial performance — we evaluate potential execution risk as well, to ensure we have a clear picture of the property in place. This evaluation includes:

• Permitting and Construction Feasibility: Evaluation of local permitting timelines, contractor availability, and cost structures. We work exclusively with contractors who have experience in efficient multi-family repositioning.

• Disruption Mitigation: Phased renovation strategies and tenant retention plans to reduce vacancy loss and stabilize income during repositioning.

• Alignment with Stakeholders: We collaborate with lenders and capital partners to ensure realistic timelines, cost assumptions, and execution strategies are in place prior to acquisition.

Greenlite focuses on heavy value-add investments where strategic improvements drive potential for strong, risk-adjusted returns. Rather than pursuing a buy-and-hold strategy that depends heavily on market cycles, we create value through targeted asset transformation. This operationally focused model enables greater control over key performance drivers and more disciplined investment planning.

Greenlite targets stable secondary markets with strong fundamentals and stable, long-term growth potential. Our selection process is grounded in rigorous analysis at both the metro and submarket levels, ensuring each investment is well-positioned to capitalize on proven demand drivers and withstand market volatility.

From acquisition to exit, Greenlite takes an active role in every phase of the investment cycle. Our team’s experience enables us to anticipate challenges, adapt quickly, and maintain strategic alignment across construction, operations, and leasing. This integrated approach helps us protect downside risk while driving strong, risk-adjusted returns.

Greenlite works with a select group of experienced capital partners who align with our value-focused, execution driven strategy. We prioritize transparency, strong fundamentals, and mutual accountability at every stage of the relationship.