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Real Estate

Company Type

Small Multifamily Aggregation


$25 Million

Investment Type




Terra Capital is seeking $25 million of equity to expand its highly successful value-add, small multifamily property aggregation strategy

Focus on sub-20-unit properties in high-growth midwestern markets, including Pittsburgh, Columbus and Indianapolis

Often overlooked market segment with few institutional owners

Seek to aggregate unlisted, value-add properties, renovate and sell as a portfolio thereby “institutionalizing” lower middle market real estate

Operating cash-on-cash returns were 15% across 20 stabilized properties in 2023 (detailed financial information available upon request)



$5 Trillion US Asset Class


Terra is targeting a $5 trillion US asset class comprising 25.5 million units with extremely little professional competition


Small multifamily properties (under 50 units) make up 80% of the US multifamily market

Only 7% of small multifamily properties are owned by institutional investors compared with 41% for larger multifamily





Target Markets


Target markets share several attractive characteristics:


Less competition – management is unaware of other institutional real estate platforms with a strategy similar to Terra Capital’s in its target markets – mostly “mom and pop” operators

Favorable costs – management is finding plenty of inventory not “picked over” over by larger competitors, construction labor is available at a reasonable cost, more landlord-friendly laws, higher yields – cap rates tend to be in the 6.5%+ range versus a national average of about 5%

Management is finding numerous value-add opportunities – aesthetically pleasing townhomes and Victorian-style buildings with “good bones” in need of renovation


Solution / Strategy


Buy a series of sub-20-unit residential buildings, at attractive prices

  • many small multifamily properties require significant renovation, precluding many potential buyers
  • send approximately 4,500 outbound touches a week to mini-multi property owners via email, phone calls, and cold calls

Renovate properties to be “top of the market” quality

Sell portfolio of properties – patient exit strategy based on carefully monitoring market conditions to optimize results




Tom Higgins| Managing Partner

  • Over ten years in real estate development, investing and brokerage, operations and construction management. Developed over 2,000 units
  • Worked previously at Lennar, Rose Associates, Silvershore and Brown Harris Stevens in a variety of roles, acquiring multifamily properties, sourcing land, developing and redeveloping properties and selling condominiums
  • BA, Economics and Philosophy, Columbia University




Ray Heimann | Managing Partner

  • Over ten years in real estate, private equity and investment banking
  • Responsible for acquisitions, deal structuring and portfolio management
  • Previously worked at Sverica Capital (closed over $750 million of acquisitions), Booz & Company (consulted on over $3.5 billion of corporate transactions)
  • Also worked in investment banking at JP Morgan managing US REIT clients. BA, Mathematics and Philosophy, Columbia University




Learn More About Terra Capital
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Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784