Prana Investments specializes in multi-family properties that provide affordable housing in New York City and Los Angeles. We focus on low- and moderate-income communities. Prana has been investing in these neighborhoods for more than 30 years and has extensive local knowledge of this segment of the multi-family housing market.
Prana has invested in more than 650 properties since 1982 and has maintained a disciplined and consistent focus in its acquisitions and management strategy since its inception. We began managing investment funds as general partner in 1988. We have completed 26 investment funds that have produced positive returns for our investors and improved the housing stock for our tenants in every fund over a variety of market cycles.
Prana believes that multi-family properties providing affordable housing for residents of inner-city neighborhoods experience greater pricing inefficiencies than more conventional real estate investments. The communities where we invest are characterized by significant government regulation, large variance in rents for similar units, differences in the physical condition of relatively similar buildings, an absence of widely disseminated market information, and limited opportunities for adding to the housing supply. As a result, better risk-adjusted returns can be achieved than from comparable real estate assets that are not rent-regulated.
Prana pursues a “value-add” strategy of investing in properties that are underperforming because of deferred maintenance and inefficient property management. Addressing these management issues creates safe, clean, and affordable housing for low- and moderate-income tenants.
We focus on neighborhoods where tenant demand remains high and significant barriers to development exist. We work hard to earn a return for investors by stabilizing and revitalizing existing properties through professional management and prudent, cost-effective improvements. We maintain the fundamental character of the buildings and do not pursue a strategy of moving buildings or units out of rent regulation. Investment risk is minimized by acquiring buildings that are occupied and that can be operated profitably without extensive redevelopment efforts or changes in the character of the buildings.
Fair and equitable relations with tenants are critical elements of our management strategy. We place a high priority on maintaining open communication with our tenants and knowing the neighborhoods where we invest. We employ people who grew up and live in these neighborhoods and we work hard to improve our properties for a mutually beneficial relationship with our tenants.
We have invested in more than $1.9 billion of property and added more than $120 million in capital improvements to our buildings since Prana began 30 years ago. Our investment in inner-city neighborhoods has created better living conditions for our tenants and improved the quality of the housing stock in the neighborhoods where we invest. Our goal is to have a positive impact by continuing to operate profitable investment funds that can provide affordable housing to low- and moderate-income tenants in the rent-regulated markets where we invest.