Focus on Locations Instead of Asset Classes, Investor Advises
In a recent interview with Multi-Housing News, Ari Rastegar, CEO of Rastegar Capital, emphasized a location-first investment strategy, focusing on high-growth Sun Belt markets like Austin, Dallas, and Phoenix, rather than adhering to specific asset classes. This approach has led to a diverse portfolio and experience in residential, commercial, and mixed-use developments across 12 states.
Originally Published in Multi Housing News
Published on: August 7, 2024
Founder & CEO of Rastegar Property Co., Ari Rastegar, has carved out a reputation as an entrepreneur who blends traditional investment strategies with innovative technologies. That has helped him create a diverse portfolio that spans residential, commercial and mixed-use properties, across 12 states.
We first talked to Rastegar in 2021, when the economic landscape was quite different compared to what it is today. Now, we asked the investor to share updates about his company, and provide fresh insights into his current investment strategies, particularly in Austin, Texas, his hometown.
When we last spoke, you told us about your plans so expand beyond Austin into tech-centric Sun Belt cities. Where is Rastegar Property present these days?
Rastegar: Our investment approach is truly sector-agnostic, prioritizing investment in locations with the right characteristics for growth rather than in any one asset class. Key characteristics we look for are strong job and wage growth, a diversified and business-friendly local economy, and generally favorable weather, leading to increased quality of life.
Ari Rastegar plans to develop roughly 6,000 multifamily units over the next three to five years.
With these attributes in mind, Rastegar’s portfolio currently includes nine projects in Texas and Arizona totaling over 5.6 million square feet and $1.5 billion including in key Sun Belt cities Austin, Dallas and Phoenix. We’re most active in Austin since it is one of the fastest-growing U.S. cities and is also my hometown, so I’m passionate about building more homes that cater to the needs of the community.
Outside of Texas, we also see Phoenix as a booming market with tremendous population growth as job opportunities expand in the area. We have an Opportunity Zone there where we have plans to build the tallest building in Arizona in downtown Phoenix, at 326 N. 4th Ave. Totaling 260,700 square feet, this development will ultimately add 261 multifamily rental units to the area, including a mix of studio, one-bedroom and two-bedroom apartments. The development will capitalize on the area’s growing demand for apartments while also complementing the diverse range of urban land uses and small businesses found in the surrounding area. We’ll continue to invest in major markets in the Sun Belt where we see the most potential for growth.
