Strategy
Our investment approach
A vertically integrated platform focused on San Francisco multifamily, Industrial Outdoor Storage, and entitled industrial land—delivering institutional-quality operations across our target asset classes.
Investment Thesis
A repeatable playbook for small multifamily.
We've built a repeatable playbook for San Francisco small multifamily—identifying underperforming assets and transforming them through in-house capabilities.
- Target Asset Class
We specialize in 3–10 unit multifamily buildings in San Francisco—a sweet spot underserved by institutional capital but large enough to benefit from professional management.
- Value-Add Focus
We target distressed, under-managed properties, trust fund sales, and underutilized floor plans where operational improvements and renovations can unlock significant value.
- In-House Execution
Our in-house remodeling and property management teams achieve costs approximately 35% below market, creating a durable competitive advantage.
- End-to-End Control
We run the entire process—from planning and design through acquisition, construction, lease-up, stabilization, and refinance to permanent loan—ensuring alignment at every stage.
Expanded Strategy
Industrial Outdoor Storage and entitled industrial land.
Blok Capital is expanding its investment focus to include Industrial Outdoor Storage (IOS) and infill industrial properties with scarce zoning, outdoor storage rights, conditional use permits, grandfathered uses, and other entitlements that are difficult to recreate in today's regulatory environment.
We look for low-coverage industrial parcels, truck and equipment yards, contractor storage sites, construction-material yards, and similar properties where location, zoning, and operational flexibility create durable value.
- Scarce Industrial Land
Infill parcels with outdoor storage, yard, or logistics utility in supply-constrained markets.
- Zoning & Entitlement Value
Properties with CUPs, grandfathered rights, or approved uses that are difficult to replicate.
- Operationally Useful Assets
Sites that support truck parking, contractor yards, materials storage, equipment storage, or fleet operations.
- Relationship-Driven Sourcing
Direct owner conversations, broker relationships, and off-market opportunities where nuanced property rights matter.
Market Focus
Why San Francisco
Strong market fundamentals, high-quality tenant demand, and compelling yields make San Francisco an exceptional market for value-add multifamily.
- 6.5%Cap Ratesvs 4% in LA, NY, and Austin—stronger yield potential
- #2Rent GrowthSan Francisco ranks second nationally in rent growth
- $1B+AI InvestmentMajor tech commitments signal continued SF demand
- LimitedSupplyPersistent housing shortfall drives rental demand
AI-driven demand. The Bay Area's dominance in AI funding is fueling renewed real estate demand. Major companies like Databricks, OpenAI, and Anthropic are expanding operations in San Francisco, pushing rents back to pre-pandemic levels and driving strong tenant demand in our target neighborhoods.
End-to-End Process
A proven, repeatable approach.
- 01Planning & DesignIdentify value-add opportunities, evaluate floor plan optimization potential, and develop renovation scope.
- 02AcquisitionTarget distressed, under-managed 3–10 unit buildings and trust fund sales in prime San Francisco neighborhoods.
- 03ConstructionExecute renovations using our in-house team at ~35% below market costs, optimizing layouts and upgrading finishes.
- 04Lease-UpProfessionally manage lease-up with our in-house team, targeting market rents in San Francisco's competitive market.
- 05StabilizationAchieve stabilized operations with optimized rents and quality tenants.
- 06RefinanceRefinance to permanent loan, returning capital to investors while positioning for long-term hold.
The Blok Capital Advantage
A durable edge in small multifamily.
Our vertically integrated model creates a durable competitive advantage in San Francisco's small multifamily market.
- In-house construction at ~35% below market costs
- Vertically integrated operations (no third-party management)
- Deep San Francisco market expertise
- Focus on small multifamily (3–10 units)
- End-to-end control from acquisition to refinance
- 8+ years track record in the market
Our in-house remodeling and property management teams operate at approximately 35% below market rates, creating significant margin for our value-add strategy.
- 120+Units
- $140MAUM
- 8+Years Experience
- SFExclusive Focus
Portfolio
Explore our portfolio
See how we've applied this strategy across our San Francisco properties.