New development projects offer investors long-term stability with a longer hold period and lower risk of unexpected problems from a In response to the housing shortage crisis that was amplified by the COVID-19 pandemic, HKV pivoted to focus on developing new multifamily construction projects. In times when the economy is strong, interest rates low and supply limited, the cost of replacing an existing property is typically higher than building new. New developments offer the following advantages: Low Maintenance and Repair: New construction properties come with a builder’s warranty required by law that covers materials, workmanship, systems, and structural elements. Investors are assured that the property meets all building codes of the current day, it is energy efficient, and is absent of hazardous materials such as asbestos or lead paint. Appreciation: New construction properties tend to appreciate at a fast pace. As multifamily developments fill with tenants, this increases further construction of retail, restaurants, schools, etc. Newer Technology: New construction properties offer better construction and more advanced, longer-lasting building material, such as improved insulation technology and advances in heating and air conditioning systems. There are no surprises, which translates as less risk and worry for our investors.