Avenue Living’s Vertically Integrated Platform Functions as an Asset Accelerator
Over its 14-year history, Avenue Living has developed a robust, vertically integrated business platform. This platform consists of hard assets, expertise, access to capital and debt markets, shared services, and strategic partners that work together to create combined efficiencies and asset optimization. With $1.6 billion in assets under management, the platform currently generates $125 million in annual revenue.
The development of this platform has allowed Avenue Living to grow beyond the typical confines of a real estate owner and operator, to evolve into a diversified asset manager. By controlling this network of assets and shared services, Avenue Living is able to maintain extensive operational control of its business and reduce external spend.
The Avenue Living platform extends to diverse classes of real estate assets and currently includes nearly 10,000 residential doors, 400,000 square feet of commercial space, 37,000 acres of agricultural land and, as of February 2020, the asset base grew to include storage properties. The self-storage business currently owns and operates 4 self-storage facilities and has another 7 under contract, with a target of expanding to 30 locations by the end of 2020.
The Avenue Living strategy is to acquire under-performing assets that are improved through capital expenditures in order to optimize their rent potential and provide maximized returns.
Through many years in business, Avenue Living has solidified relationships with lenders, investors, and brokers. Avenue Living has a 14-year track record of successfully raising over $425 million in external capital and never missing a distribution payment. Additionally, with an extensive network of lenders and real estate brokers, the platform has access to off-market deals and unique financing options to ensure all new capital is strategically deployed efficiently and effectively.
Avenue Living is home to a suite of shared services, expertise and talent that exist to provide mutual benefit to Avenue Living’s various business units. Within these shared services exists a variety of skill-sets that help business units succeed. This expertise includes financial analysts, technologists, legal counsel, strategic and creative marketing professionals, accountants, underwriters, property managers and human resources. The aggregate platform includes the manpower of over 450 full-time employees.
The shared services model also includes business-to-consumer services, one of which is a 25-person call centre to service those who live and store with us. Another important unit within the platform is Global Logistics Solutions (GLS), a supply chain management company that sources products, services, and amenities. GLS is a vital component in creating organizational efficiencies in every facet of the Avenue Living platform.
The Platform as an Asset Accelerator
With every component that is added to the platform, it becomes stronger and more efficient. The result is a well-oiled machine that acts as an asset accelerator. When an opportunity – in essence, a new asset vertical – is absorbed into the platform, it becomes privy to the suite of services. The access to these many services, from legal counsel to logistics solutions and many more in between, help to propel the startup forward at a rate that would not be possible for an independent.