Florida’s dynamic market gives opportunities for industries like real estate to flourish as the demand for housing increases. With the state’s booming economy, potential job openings have been made available for the middle market, increasing the demand for housing. However, there is still a gap in terms of affordability of housing for workers who want to live close to their workplaces.
Kenneth Polsinelli founded Peacock Capital in 2016 when he and his family moved to Florida, seeing the state’s housing market as an opportunity to follow his mission of building workforce multifamily housing communities for families. According to Ken, the rise in demand for housing has been increasing over the years and the supply has been severely constrained.
“There is a demand for housing in this market and what we're doing is moving to meet a different part of the market. The supply of housing that caters to the working class is depleting fast while the demand is increasing as it is a necessity for many workers to live close to their workplaces,” Ken says. He adds that Peacock Capital delivers high-quality communities for its residents that are located strategically near their workplaces.
Peacock Capital acquires buildings that have been undercapitalized and renovates them with high-quality and durable materials, making them sustainable and affordable for the long term. Ken emphasizes the importance of sustainability, saying that the firm’s different approach in the market is what gives an advantage to both the residents and the investors.
Peacock Capital’s multifamily projects generate long-term cash flow, making it suited for investors seeking to generate consistent long-term cash flow. The firm’s investment model is unique, as the firm pays back all the capital before the sponsors earn any fees, which best aligns everyone's interests. It pays back all the investors as quickly as possible, and investors still participate in cash flow going forward as they continue to hold an equity position.
Ken emphasizes that there are risks in investing in real estate as not all years will be a good year for investors. When speaking to the benefits of long-term investment, Ken states, “There will always be peaks and troughs in the industry, but the advantage of investing in workforce multifamily is that the demand never goes away. We are providing for an essential part of the market.”
The locations are strategically chosen in desirable areas with diverse communities that offer nearby employment, access to neighborhood amenities, and convenient transportation, enhancing the overall quality of life for the residents. As buildings are renovated with high-quality materials, they will last for years, making them sustainable and affordable for the middle market. The firm also builds the housing in a sequential process, which lowers the development risks. Ken shares that this strategy gives them a favorable advantage in the debt market as lenders are more willing to provide construction debt because of the lowered risks.
This long-term investment is beneficial for both the residents and the investors, as residents are not forced to move, and operating costs are lessened. Peacock Capital adheres strongly to its values of being resident-centered, giving the residents the option to stay in long-term leases, and allowing them to settle with their families longer in the housing space created for them. The founder adds, “If the residents are well taken care of, they will also take care of the communities where they live, giving a major advantage to all stakeholders.”
With Florida’s growing economy, Ken believes that the demand for housing will only increase. Florida’s continued population growth will further exacerbate the need for workforce housing; and Peacock Capital is poised to meet this need.
“We will be like a cork bobbing along the massively rising ocean that is Florida’s economy; I’m positive that Peacock Capital will remain standing and ready to serve Florida’s hard-working families for the next 50 years,” Ken says.
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