Domain Communities is a private equity firm specializing in multifamily real estate investments. Its success is built upon the expertise and experience of its principals. By buying intelligently, managing efficiently, and exiting timely, it has created exceptional returns for its partners and investors for more than a decade. Domain focuses on acquiring Class A and B properties of at least 200 units in Arizona, Texas, and Oklahoma. To ensure that its goals are completely aligned with those of its investors, Domain invests its own capital in every transaction. The Process Acquisition - A key component of Domain’s competitive advantage is its focus on a few selected markets. Domain’s reputation for performing and closing deals in these markets enables it to acquire attractive properties, sometimes at less than higher bidders, particularly in distressed situations involving seller financing. Diligence - Domain’s diligence begins by assessing the location of a property. As with all real estate, location is a key to both the short and long term performance of a multifamily property. Domain has segmented each of its markets into numerous submarkets and carefully assessed employment, transportation, demographic, and other variables for each to determine which submarkets offer the best potential for performance and appreciation. Another key component of Domain’s diligence is its proprietary financial models. Domain runs multiple scenarios simulating various market conditions. This capability is especially important in the current volatile economic environment with falling occupancy, lower rents and higher concessions. Domain is able to ensure that every transaction is structured to perform under any number of stressful conditions and ultimately provide the best return. Financing - In the current credit crisis, with financing unavailable to many potential buyers, Domain’s experience and sophistication with numerous financing vehicles is perhaps its greatest competitive strength. Domain’s founder is a bond attorney who pioneered uses of tax-exempt bond financing for multifamily properties. Thus, in addition to traditional funding sources such as Fannie Mae and Freddie Mac, Domain has the expertise to credit enhance municipal bonds to achieve a much lower cost of funds. Management - Maximizing occupancy and rents and controlling costs are critical to the performance and appreciation of any property. Domain’s seasoned professionals have many years of experience in our key markets. This ensures that day-to-day operations and maintenance of each property are in capable hands. Disposition - While Domain has found that the typical holding period for a property is five to seven years, it is constantly monitoring market conditions to determine the most profitable exit timing and approach. Often the preferred vehicle for capital gains will not be a sale of the asset but an aggressive refinancing at an enhanced value with lower cost sources of funds such as tax-exempt bonds. This strategy can repay capital investment while allowing our partners to enjoy potential future property appreciation gains. Domain’s long-term relationships and extensive experience with non-profit ownership also offer another potential exit strategy through sales to non-profit entities financed by tax-exempt bonds.