Buying or developing good, well-located residential properties.

Holding them as core properties for the very long term, or

adding value through improvement and timely resale,

since 1958.

Eadweard Muybridge
San Francisco from California Street Hill
13-panel, panorama of San Francisco, 1878.
Vintage albumen prints.

Enduring
Values

Our philosophy is basic. Buy or develop good, well-located residential properties. Manage them well. And hold them as core properties for the very long term, or add value through improvement and timely resale. This strategy has produced exceptional results year after year. Sack Properties’ portfolio includes apartments and condominiums throughout California. Some of these properties are financed and held by project-specific limited partnerships; some are held in commingled funds or programmatic institutional joint ventures. Historically, each of these investments and investment vehicles has provided our partners with a steady income stream, substantial tax-deferred cash distributions from periodic refinancing, and multifold growth in the value of their invested capital.

Regional
Focus

From 1958 to 2012, the Sack Properties strategy was to focus our real estate investments on multifamily residential housing in the San Francisco Bay Area. The reason was not just because we are based here and we know the region well. Local resistance and strong environmental regulations have strictly limited new developments, while the growing population has increased the demand for rental units. This has made the Bay Area one of the best places in the nation for investing in residential rental properties. With the introduction of our first commingled fund in 2012, Sack Properties expanded our geographic focus to encompass similar supply-constrained, growth locations in southern California; and in the future may consider investments in similar markets across the Western U.S. As specialists, we have honed our knowledge of local demographics, markets, regulation, and hands on management practices to enhance the success of each and every investment.

Lewis Hine
Empire State Building Construction
Vintage gelatin silver print, 1931.
Courtesy of George Eastman House.

Personal
Involvement

We put our own money into every limited partnership and commingled fund, and manage the properties as our own. That means that every important decision is made at the top and never delegated down a chain of command. A Sack principal is in frequent contact with each property’s on-site management staff and visits each site regularly. At the same time, we avoid conflicts of interest with limited partners by focusing exclusively on acquisitions, development and property management and not on the sale of additional services to the partnerships. We make our money alongside our investors, not before them.

Key Areas
of Expertise

In addition to property management, we engage in a range of real estate-related activities. These include: acquisition and asset management of high-quality, well-located multifamily properties; land assemblage followed by ground-up development; acquisition and turnaround of troubled properties; development or redevelopment and sale of condominiums; development of raw land for homebuilders, and strategic consulting and advisory services.

Continuous
Cash Returns

While many real estate investment firms buy properties to hold briefly and liquidate, often resulting in a hefty capital gains tax, our core investment strategy is to hang onto properties over the long term – in both our property-specific limited partnerships, and our commingled open fund. For investors, this means that appreciation in the value of the property is captured by a series of periodic refinancing which allows tax-deferred cash distributions from appreciated value. Also, since the original property remains in the hands of the partnership, they can continue to count on receiving regular cash distributions over a period of many years, even generations.

When we partner with investors who are interested in a shorter investment horizon and the IRR that can be realized from a value-add strategy, we identify and purchase the appropriate properties in our target markets. Shortly after closing we implement the property upgrade plans; and then stay alert to market conditions and investor interest to execute a sale at an attractive internal rate of return and multiple on our investment. These investments typically also deliver an attractive blend of current cash flow and appreciation.

Investor
Loyalty

Evidence of our group’s integrity and growth in value is the significant number of people who have kept their investment with us since the first project was formed. Today, we are serving second- and third-generation family members of the original investors and also large institutional investors. Our portfolio has grown largely through word-of-mouth endorsements and unsolicited calls from investors’ friends and colleagues who seek to become limited partners. If you are an accredited investor, and are interested in joining our group of limited partners, we invite you to contact us.