Island Sky Investments is a real estate investment company that focuses on acquiring and managing properties across the United States. With offices in California, Texas, Florida and other key markets, they aim to provide solid returns for investors through a buy-and-hold investment strategy focused on cash flow. As with any real estate investment firm, it is important for potential investors to closely examine the company, its leadership team, investment strategy and past performance before making a commitment. This article will take an in-depth look at Island Sky Investments, including an overview of the company, its leadership, investment approach, types of properties, investor reviews and more. Key factors like the experience level of management, transparency, fees charged and historical returns will be covered to provide a complete picture of this real estate investment opportunity.
Background and company overview
Island Sky Investments was founded in 2008 by CEO Scott Schang, who brings over 25 years of real estate investment experience. The company is headquartered in Irvine, California and focuses exclusively on acquiring Class B and Class C multi-family apartment complexes, mainly through off-market deals. Island Sky’s target markets are secondary cities in Texas, Florida, North Carolina, Arizona and other high-growth states. The goal is to maximize cash flow and value through upgrades and improved management. As of 2022, Island Sky managed over $250 million in assets across 2,500 units. The company claims that its private real estate funds have delivered average annual returns of 21% to investors since inception.
Management team
In addition to founder and CEO Scott Schang, the Island Sky executive team includes Co-Founder and President Bill Henrich, Chief Investment Officer Chris Linkas, and other experienced real estate professionals. The company highlights the expertise of its acquisitions team in sourcing promising properties off-market. It also notes its vertically integrated structure, with in-house capabilities for acquisitions, property management, construction, accounting and investor relations. This enables hands-on oversight across the entire investment lifecycle.
Investment strategy and fees
Island Sky Investments employs a value-add investment strategy focused on Class B and C multi-family properties priced below replacement cost in markets with strong population and job growth. The company looks to add value through renovations, improved management and other enhancements. Island Sky offers individual real estate investment opportunities through private placement funds, typically structured as 5-year funds with a 2-year extension option. The minimum investment is $50,000. Fees include an upfront placement fee of 1-3% and an annual asset management fee of 1%. There is also an eventual disposition fee and promoted return to management.
Investor reviews
Reviews of Island Sky Investments from individual investors have been generally positive. Investors praise the responsiveness of the company’s investor relations team and the regular communications on property acquisitions and performance. The frequent distributions from property cash flows are also noted favorably, along with the direct access investors receive to the executive team. Criticisms of Island Sky have centered around lower than expected returns for some investors and a lack of transparency around certain fees. However, overall investor sentiment appears positive, especially when compared to non-traded REITs.
Types of properties and locations
Island Sky Investments focuses on buying Class B and C multi-family properties in high-growth secondary markets, mostly across Texas, Florida, the Carolinas and Arizona. These tend to be suburban apartment complexes and garden-style buildings constructed from the 1970s to 1990s. Markets targeted include places like San Antonio, Austin, Tampa, Raleigh and Phoenix among others. The properties are often priced significantly below replacement cost, providing opportunity to increase rents and improve operational performance after acquisition.
In summary, Island Sky Investments is an experienced real estate investment firm focused on value-add multi-family properties, with a buy-and-hold strategy centered on cash flow. It sources deals off-market and targets high-growth secondary cities. The company is vertically integrated and investor reviews indicate relatively strong satisfaction levels. As with any real estate investment, appropriate due diligence is highly advised before investing.