The group that manages the 401k program for Metonic strongly suggests investment diversity. Most investment strategies include real estate even within a 401K plan, but many investors do not know the diversity of investments within their selected residential real estate portfolio.
The Metonic portfolio is diverse in real estate classes while offering investors the opportunity to choose properties they want to own. Investors in real estate shouldn’t put their “eggs all in one basket” with real estate any more than they would in the stock market.
Real Estate publications tend to differentiate investments by classes with “Class A” at the top and “Class D” at the bottom. I tend to think of the Metonic residential portfolio as “best in class” “workforce” and “affordable”.
Best in Class: This is the smallest segment of the Metonic portfolio and includes truly special assets and locations that speak to a specific client. Ravello192 is the perfect example of a “Best in Class” asset.
Workforce: The largest group of Metonic investments is in workforce housing. Metonic was in the workforce housing business before it was cool. This asset group serves the widest segment of residents in our portfolio and includes properties in enduring locations that typically require a “refresh” at acquisition. Great examples of workforce housing include Torello, Wyndham and Lakeshore.
Affordable: These apartments are for consumers that will earn less than 60% of the area median income. The Metonic portfolio includes moderate and low income housing that caters to seniors and families. These properties receive the least publicity but generate the most consistent return on investment because the resident rent is often subsidized.
The Metonic residential portfolio is more diverse than our peers. The diversity and geography of our portfolio provide our partners a unique opportunity to earn an above market return on investment without the volatility of other investments.