Acquisition_Criteria_2026.pdf
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2026 Acquisition Criteria
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1. Executive Summary
Legacy Capital Group is actively deploying capital across three core asset classes: multifamily, industrial, and hospitality. As of Q3 2026, the firm manages $1.48 billion in AUM across 42 properties in 12 states. The current pipeline targets an additional $250–400 million in new acquisitions over the next 18 months, concentrated in high-growth Sun Belt and Southeast markets.
1.1 Firm Profile
| Metric | Current |
|---|---|
| Assets Under Management | $1.48B |
| Portfolio Properties | 42 |
| Active Markets | 12 states |
| Weighted Avg. Occupancy | 94.8% |
| Weighted Avg. Cap Rate (acquisitions) | 5.75% |
| Leverage Target (LTV) | 60–70% |
2. Multifamily Acquisition Criteria
Legacy Capital Group is aggressively expanding its multifamily portfolio, targeting Class A and Class B garden-style and mid-rise properties in markets with demonstrated population growth and employment diversification.
| Parameter | Requirement |
|---|---|
| Unit Count | 80 – 400+ units |
| Price Range | $15M – $85M |
| Per-Unit Cap | $140K – $280K |
| Year Built | 2000 or newer (value-add exceptions considered) |
| Occupancy at Close | Min. 88% |
| Target Levered IRR | 14 – 18% |
| Target CoC (Year 3) | 8 – 10% |
| Hold Period | 5 – 8 years |
| Leverage (LTV) | 60 – 70% |
2.1 Priority Multifamily Markets
The following metropolitan areas have been identified as Tier 1 and Tier 2 priority markets based on net migration trends, employment growth, and rent growth projections. Budgets below reflect target equity deployment per market for calendar year 2026.
| # | Market | Tier | Target Allocation | Rationale |
|---|---|---|---|---|
| 1 | Dallas–Fort Worth, TX | Tier 1 | $60M – $90M | #1 net migration; 380K+ jobs added YoY |
| 2 | Atlanta, GA | Tier 1 | $50M – $80M | 8.2% rent growth; diversified employment |
| 3 | Phoenix, AZ | Tier 1 | $45M – $75M | 2.3% annual population growth; limited supply |
| 4 | Nashville, TN | Tier 1 | $35M – $55M | Corporate relocations; strong absorption |
| 5 | Charlotte, NC | Tier 1 | $30M – $50M | Financial hub; 9.1% rent growth |
| 6 | Tampa, FL | Tier 2 | $25M – $40M | In-migration; no state income tax |
| 7 | Denver, CO | Tier 2 | $20M – $35M | High barriers to entry; strong wages |
| 8 | Raleigh–Durham, NC | Tier 2 | $20M – $35M | Research Triangle; tech employment growth |
| 9 | Austin, TX | Tier 2 | $20M – $35M | Tech migration; supply pipeline moderating |
| 10 | Orlando, FL | Tier 2 | $15M – $30M | Tourism recovery; strong rental demand |
Property Types
Garden-style, mid-rise, and select high-rise. Stabilized and light value-add preferred.
Deal Structures
Fee-simple acquisitions; JV equity; preferred equity on select opportunities.
3. Industrial Acquisition Criteria
Legacy Capital Group is expanding its industrial footprint with a focus on last-mile logistics, light industrial parks, and warehouse/distribution facilities in transportation-advantaged corridors.
| Parameter | Requirement |
|---|---|
| Square Footage | 40,000 – 350,000 sq ft |
| Price Range | $8M – $55M |
| Price per Sq Ft | $85 – $200 |
| Clear Height | Min. 24 ft (28+ ft preferred) |
| Dock Doors | 1 per 5,000 sq ft minimum |
| Occupancy | 75%+ (or value-add with path to stabilization) |
| Target Levered IRR | 12 – 16% |
| Hold Period | 5 – 7 years |
3.1 Industrial Priority Markets
| # | Market | Target Allocation |
|---|---|---|
| 1 | Dallas–Fort Worth, TX | $30M – $50M |
| 2 | Atlanta, GA | $25M – $40M |
| 3 | Inland Empire, CA | $20M – $35M |
| 4 | Phoenix, AZ | $15M – $30M |
| 5 | Memphis, TN | $10M – $20M |
4. Hospitality Acquisition Criteria
Legacy Capital targets select-service and extended-stay hotels under recognized flags (Marriott, Hilton, Hyatt, IHG) in markets with strong leisure and business travel fundamentals.
| Parameter | Requirement |
|---|---|
| Keys | 100 – 250 rooms |
| Price Range | $10M – $45M |
| RevPAR Threshold | $75+ TTM |
| Brand | Marriott, Hilton, Hyatt, IHG preferred |
| Target Levered IRR | 15 – 20% |
| Target CoC | 9 – 12% |
| Hold Period | 5 – 7 years |
5. Consolidated Deal Parameters
| Metric | Multifamily | Industrial | Hospitality |
|---|---|---|---|
| Price Range | $15M – $85M | $8M – $55M | $10M – $45M |
| Target Levered IRR | 14 – 18% | 12 – 16% | 15 – 20% |
| Minimum CoC (Year 3) | 8 – 10% | 7.5 – 9% | 9 – 12% |
| Leverage (LTV) | 60 – 70% | 60 – 65% | 60 – 70% |
| Hold Period | 5 – 8 years | 5 – 7 years | 5 – 7 years |
| Target Markets | 10 MSAs | 5 MSAs | 6 MSAs |
5.1 Deal Sourcing
Legacy Capital Group sources deals through four primary channels: (1) established broker relationships in each priority market, (2) off-market direct outreach by the internal acquisitions team, (3) 1031 exchange pipelines, and (4) institutional dispositions from REITs and private equity sellers.
The firm closes 70%+ of deals all-cash with a 21-day close capability, providing a significant competitive advantage in speed-sensitive negotiations.
5.2 Submission Guidelines
Brokers and sellers should submit comprehensive offering memoranda to [email protected]. Initial underwriting is completed within 48 hours of receipt. All submissions are treated as confidential.