JKV Capital

JKV Capital was a leading national private investment firm headquartered in Newport Beach, California. Known for its localized focus and expertise, it provided investors and stakeholders with exceptional outcomes. The company's business footprint was in single-family residential and investment management.

JKV was vertically diversified and integrated during its operation, offering acquisition, construction management, property management, and sales functions for single-family homes across multiple U.S. markets.

JKV's core competencies included an experienced team, vertically integrated in-house capabilities, strategic partnerships with related businesses, proprietary technology, and a process and data-driven approach. Its collective experience spanned thousands of single and multi-family rehab and rentals nationwide.

The company is no longer operating or raising funds.

Addressing the Housing Need for Working Class, Middle-Income Workers

Founded in 2017, the firm aimed to provide economical "workforce housing" to tenants and first-time buyers by acquiring, renovating, and reselling or renting single-family homes in affordable, rapidly growing communities across the United States. "Workforce housing" is defined by the Urban Land Institute and focuses on housing built to serve families with household earnings between 60 and 120 percent of the area median household income (AMI).

These households often comprise police officers, firefighters, teachers, healthcare workers, janitors, construction workers, retail service providers, government employees, social workers, clerks, and people with similar occupations. They are often two-income households that must be included in the housing market.

JKV's principals recognized the wide gap in the affordable and available housing market for middle-income workers. In many cities across the country, these workers found it increasingly challenging to buy or rent housing in the communities where they work. Salaries lagged behind rising living costs, and affordable housing in their locations was scarce. This forced many to relocate to the region's outskirts, resulting in longer commute times, more traffic, and other challenges.

JKV provided a path for tenants and families looking to own homes near their jobs, schools, neighborhood retail, and public transportation while offering investors an opportunity.

Throughout its tenure, JKV understood something fundamental and critical: its clients took pride in where they lived. Therefore, the company never leased or sold a home to anyone where its team wouldn't want to live. The company was also dedicated to impacting the communities it served and beautifying neighborhoods by providing affordable workforce housing to renters and first-time homebuyers.

Value-Added Strategies

JKV managed two investment funds for purchasing, renovating, and selling single and multi-family residential assets during its operations. It was an industry leader in the value-added residential real estate space and consistently outperformed its peers.

JKV invested in single-family homes in specific U.S. markets for its clientele. The firm separately managed accounts tailored to particular investor needs to balance current income yield with asset appreciation.

JKV's Strategy

Its success in achieving higher risk-adjusted returns for investors was due to an unwavering focus on the end customer. The company used advanced analytics with its proprietary-driven software and financial models to analyze potential investments from multiple distribution channels and bring a detailed approach to each asset.

Additionally, it had dedicated local teams to research market trends and consumer preferences, providing high-quality houses to tenants and potential owners and ensuring significant investor value. This local boots-on-the-ground approach enabled JKV to respond quickly in a competitive market, making better purchase decisions that created immediate value for investors.

Southern California Footprint

During its operation, part of JKV Capital's value-added investment strategy included finding distressed single-family and small multi-family residential opportunities in core markets in Southern California. Its investments were short-term, and it could add immediate asset value through its integrated platform. Its portfolio included residential assets in varying stages of renovation, with exit price underwriting between $750,000 and $1.5 million.

JKV also capitalized on the market discrepancy between supply and demand throughout Southern California. All assets were purchased below replacement cost in high-demand sub-markets where success depended on the company's superior operations. They are routinely paid quarterly dividends that outperform their peers.

Special Opportunities

Additionally, JKV partnered with select clients to manage distressed residential situations, aligning their long-term goals and objectives. Its comprehensive array of property and asset management services allowed it to execute the stabilization or disposition of individual assets or entire portfolios. The organization worked effectively under tight deadlines and was selective in its opportunities to deliver the best potential results.

The JKV Team

The team behind JKV was also responsible for the firm's success. The team included experienced investment and operations professionals with extensive experience investing in residential real estate. The company also worked closely with local real estate professionals, lenders, and affiliated business partners. Across all funds, investments were backed by intentional asset origination, thorough underwriting, and exceptional investment due diligence to ensure quality results.