Purpose - Who We Are and What We Do
Crain Capital, formerly known as the Anderson-Crain Investment Group (ACIG) and a division of Crain Company, is a Private Equity Real Estate Company with a bias towards residential opportunities and solutions. The team is responsible for sourcing, acquiring, and supporting all Crain Company investment interests.
Established in 2012 and headquartered in Wichita, Kansas, Crain Capital operates under the umbrella of Crain Company which owns Kansas Insurance Team Company (KITC), Crain Management, Crain Development, Legacy Loans, and Crain Company 3D (CC3D). Crain Capital invests in select markets across the United States with an emphasis on multi-family housing in tertiary markets. In addition, Crain Capital works closely with all Crain Companies to build, manage, insure, and finance their investments and supports other investors looking for one or all of our services. Crain Capital 3D is our first of many investments targeting high-impact new technologies to build affordable, high-quality, low to no-carbon-footprint housing solutions.
Impact and ESG investment strategies are in the process of being developed and will be offered as an alternative investment fund when the market returns prove out.
Value Proposition
The demand for affordable housing is acute. There is a shortage of approximately 7 million homes in the US alone, according to the National Low Income Housing coalition. The data clearly demands a supply solution. In the multifamily housing world, the National Multifamily Housing Council stated, “The U.S. needs to build 4.3 million more apartments by 2035 to meet the demand for rental housing. This includes 600,000 units (total apartments) to fill the shortage from underbuilding after the 2008 financial crisis.”
Crain Capital sees this need as its primary strategic driver but more needs to be done to close this gap. Crain Capital has been successfully earning above-market returns and continues to invest in existing properties while developing scalable solutions to address this affordable housing crisis. For now, Crain Company is investing heavily in 3D and other emerging construction technologies before raising capital to accelerate proven new construction projects.
Investment Thesis
Crain Capital primarily invests in multi-family housing partnering with institutional investors and high-wealth individuals to invest in real estate. Historically, Crain Capital has earned above-market returns by investing in tertiary markets. Today, Crain Capital continues to target multi-family off market opportunities but has expanded to primary and secondary markets across the United States.
This proven model has worked well in good times earning 22+% net IRR, and will continue to work well in our current market conditions. Crain Capital's successes have funded 3D and other emerging building solutions that will become an investment vehicle for groups passionate about three needs:
- Affordable housing at scale
- Sustainable housing (targeting net-zero)
- High-quality housing (elements of design, materials, weather resilience)
Crain Capital is currently raising capital for its multi-family housing investments and expects to have one or two of its emerging technologies proven and ready for interested investors by Q3 2023.
Investing Options
Crain Capital offers three ways to invest. By coupling their proven target investments with their investment in disruptive innovation in affordable and sustainable housing, Crain Capital sees these complementary investments as a differentiated strategic position.
Market Return (Traditional Model)
For over ten years, Crain Capital has purchased, built, and sold properties with an average return of 22%. This investment is focused on the fundamentals of buying and building multi-family housing that earns or beats market average returns.
Impact Return (Sustainable Housing Investment expected to be ready Q3 2023)
For investors interested in impacting the future of affordable housing, Crain Capital will offer a blended investment of 3D and other proven technologies. This will allow investors to make returns that will have a measurable impact on the growing affordable housing crisis.
Human Return Model (Non-Profit Giving Option)
Crain Family Foundation was developed to address several barriers to low and working-class communities. For our nonprofit investment partners, Crain Capital has developed ways of giving alongside Crain Company to expand community services and home ownership pathways. The return on this investment is developing human potential. When we partner with those in greatest need, lives are changed.
Investment Structure
Traditional Investment
Crain Capital's "traditional investment" is designed for high wealth individuals and institutional investors. Please contact us to learn more.
2-20 Model
Crain Capital has developed a low-risk real estate investment opportunity for institutions and endowments. Using a pledge of liquid investments, participants gain ownership in real property assets, earn cash distributions, cash donations and benefit from significant tax basis reductions. Please contact us to learn more!
Both options can be used to invest in multi-family and our housing developments.
GUY BELL
Guy Bell oversees all investments at Crain Capital. His background has been leading public and private companies with operations across the United States and internationally (largely online).