METROS CAPITAL has developed a proprietary global macro framework to set the strategic direction of its investment activities. In an era of radical Central Bank activism, a real estate investment must be informed by more than just the traditional deal-specific, micro-analysis; for changes in the macro environment can quickly impact both liquidity conditions and fundamentals in real estate markets.
Metros Capital uses a process of entrepreneurial deal sourcing to identify and target underutilized properties in thriving and rapidly evolving urban neighborhoods. Economic opportunity is increasingly segregating in these areas and the mass movement of people creates tremendous opportunities in cities built long ago and under different economic regimes.
A revolution, similar to the pre-Civil War rise of free labor in the early Industrial Revolution, is underway and radically altering the structure of the economy, the labor market and, indeed, society itself. While advances in technology and media are the most striking and obvious manifestations of this revolution, all around the world the built environment and the landscape of cities are undergoing large-scale and dramatic changes. It is within this evolution that Metros Capital seeks to identify and create value.
Metros Capital’s unique investment process is complemented by its approach to improving the built environment. The revolution in technology has created a disconnect between expectations and reality. In almost every other sector—electronics, communications, media, autos and even food—consumers are now used to seeing products and services heavily influenced by the latest advancements in design and quality. Not so with the built environment, especially with living spaces. Metros Capital is working to bridge this disconnect. By incorporating elements from design thinking, environmental sustainability and the latest technologies in its re-imaginings, Metros Capital can offer built spaces that are more inspiring, useful and responsible.
In short, Metros Capital engages in active investment guided by a long-term focus.
Regulations throughout the country cause market anomalies, but especially so in dynamic, supply–constrained markets like Los Angeles. Sometimes the unintended consequences of these regulations—years of persistent underinvestment in capital improvements—present investment opportunities. Many incredibly well-located properties end up in disrepair and are underutilized. In certain neighborhoods there is a huge and growing gap between sales values and rental rates for non-regulated properties and regulated properties. This gap presents a great opportunity to acquire existing properties and engage in large-scale reimaginings.
As economic opportunity clusters more and more in supply-constrained urban markets, new models for providing living spaces are emerging. The popular emergent technologies of the era have encouraged the sharing economy and, as a result, young millennial workforce entrants are more comfortable and often prefer living with roommates. This trend presents an opportunity to take well-located older properties and reimagine them as modern co-living spaces.
Technological innovation is dramatically disrupting our way of life and cities are rapidly evolving as a result. Changing city landscapes present opportunities to completely rethink the development of the built environment. Metros Capital is currently working on a proprietary model that will revolutionize the urban development model.