We rigorously execute strategic value creation plans, restoring underperforming multifamily assets to their maximum market value, with great upside potential gained via improved energy efficiency, increased occupancy and innovative cost management initiatives. This value-add class B u0026amp; C market sector, includes properties suffering from mismanagement by previously undercapitalized owners, who lack keen operational expertise.
Our strategy involves close management of the investment life cycle stages for each project, which includes sourcing opportunities, due diligence, underwriting, investment selection and disposition. CEP establishes strategic partnerships with experienced industry specialist that assist with overseeing each investment life cycle. We earn property acquisition, asset management and disposition fees, in addition to percentage of remaining profits subordinate to our private partners earnings and post achieving minimum return thresholds.
We select properties that include value with emphasis on appreciation and ability to purchased near or below replacement cost. This strategy affords us the ability to structure our deals targeting total returns ranging 12% to 15% with 5% to 9% as fixed dividend payment from property cash flows. A diverse strategy offering provides us the ability to customize personal portfolio diversification strategies synced with investor objectives. Our private partners are offered passive opportunities of superior cash-on-cash returns with less volatility compared to the stock market.
CEP expects to make investments directly through limited liability companies, limited partnerships, joint ventures, fractional ownerships and/or pooled investment funds “group investment” via private placement memorandums. The investments will be repositioned and sold for a profit within 6-12 months (short-term) or held within the asset portfolio for 24-36 months prior to commencing the disposition life cycle, with a 60 month maximum (intermediate-term). Post achieving stabilization, projects may also be refinanced or packaged into a blanket loan, serving as one of many exist strategies for our private partners.
For long-term portfolio assets, CEP plans to establish private equity real estate investment funds focused on nonperforming multifamily loans, affordable senior housing tax credit syndicates and preservation of affordable multifamily projects. The aforementioned syndicates have long-term investment horizons; therefore, will be aligned with institutional, endowments and accredited investor investment objectives.
