Rainier converts undervalued office buildings and hotels into apartments and homes. We generate higher investor returns as an opportunistic developer focused on distressed properties that provide higher returns than traditional projects.
We develop adaptive reuse and Affordable LIHTC projects. These multifamily properties provide affordable housing in high barrier, expensive markets. We typically build smaller units which allows for a higher rental rate per foot and increased investor returns.
Our adaptive reuse projects are conversion of office buildings and hotels to rental apartments. We buy these properties at distressed pricing - often through foreclosures - which allows us to complete the projects 25% to 30% below replacement cost. This allows us to charge a lower rent to tenants while still delivering strong returns to investors with IRR's of 25% and higher.
Affordable Low Income Housing Tax Credit projects like our Fox St project in Denver offer the lowest possible rents in expensive markets and provide outsized returns to our investor partners. The much publicized affordable housing crisis in the US creates deep demand for these rental apartments.