By SALLY YORK Argus-Press Staff Writer Oct 7, 2020
Mark Devereaux, co-founder and CEO of the new Stelvio Equity Group, said his “aha moment” came when he saw his 401(k) pension fund decline in value after the stock market took a dip in the late 1990s.
“I didn’t see how I could ever retire when my 401(k) went up and down,” said Devereaux, 50, of Oakley. “I knew there had to be a better way.”
Devereaux and Josh Galardi, co-founder and chief development officer of Stelvio, believe they have found a better way. In January, they formed Stelvio Equity Group, a private real estate investment company focused on acquiring and operating multi-family apartment properties with passive investment partners.
The company targets apartment complexes that are stable, but show potential to improve management and increase profits, significantly enhancing potential investor returns, the partners said.
Stelvio’s first investment, valued at millions of dollars, was in Meadowview Apartments on Norton Street in Corunna, a 99-unit complex. The partners and Devereaux’s wife, Stelvio co-founder and COO Kelley Devereaux, are personally operating Meadowview.
“We saw we could provide opportunities to people who wanted to get involved in bigger projects like this,” said Galardi, 39, of Owosso. “We produce returns that are greater than the market offers, and we’re managed by local people and investing in local real estate.”
The company’s goal of improving multi-family residential properties dovetails nicely with the Shiawassee Economic Development Partnership’s mission to increase the quantity and quality of available housing in Shiawassee County in order to draw new businesses to the area or expand existing ones, said SEDP President/CEO Justin Horvath.
“We’ve got the hottest job market I’ve ever seen in Shiawassee County right now. I’ll bet we’re close to 1,000 job openings,” Horvath said. “In order to attract and keep people you need good schools and so on, but you also need housing options, including apartments, and better quality apartments.
“Sadly, we’ve got a lot of run-down complexes because of poor management. What Mark and Josh are doing with Stelvio is addressing the needs of a key segment of the population. Stelvio is the solution in a significant part of the housing market. These are local guys who want to invest their capital in our community. We need to support them the best we can.”
As Galardi put it: “We are providing a better living situation for a lot of folks, upping their quality of life.”
Galardi was born and raised in Owosso, and attended Owosso High School. He was employed by Young Chevrolet Cadillac Buick GMC for 18 years, working his way up to a management position. He currently handles business development for Covenant Eyes in Owosso.
He and his wife, Amanda Galardi, live in Owosso.
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Deveraux has made the area his home for nearly three decades, working as the CFO of Main Beverage in Owosso for 28 years. From 2002-10, he and Kelley Devereaux began purchasing houses, fixing them and selling them, completing $7.5 million in real estate transactions.
The business partners said they want to keep their investments in Shiawassee and surrounding counties. They expect to close on the purchase of a second large apartment complex early next year.
Meadowview is already seeing improvements. For example, through a Consumers Energy program, Stelvio has installed thicker insulation in the attics in all nine of the complex’s buildings, digital thermostats that can be adjusted remotely from tenants’ smart phones, low-flow fixtures in sinks and showers, and LED light bulbs.
In addition, Meadowview’s website has been overhauled to enable potential renters to take a virtual tour and complete the full process of leasing a unit online.
More improvements are coming, the partners said.
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“We’re trying to break the stereotype of the poorly run complex,” Devereaux said. “These are people’s homes. Everyone deserves value for their housing dollar, and that’s what we’re striving to do. The people who live here are the nuts and bolts of our economy. Business talent needs a place to live, and that’s what we’re attempting to provide.”
But naturally, they are also aiming to produce attractive returns for their investors, often people who want to diversify their portfolios by investing in tangible assets in their own communities, without the hassle of hands-on property management.
Denise Selleck, a local insurance agent and family friend of Galardi, recently invested in Stelvio.
“I felt this was a great investment alternative to help me diversify, and the returns are outpacing my other investments,” Selleck said. “Mark and Josh are investing in their community, and that’s very important to me. And I understand the need for housing in this area, whether you rent or buy. We need good housing for people.”
At first, Selleck said, she thought the financial opportunity presented by Stelvio was too good to be true.
“But it’s not too good to be true,” she said. “It’s fantastic. I’m very, very happy I invested.”
For more information, visit stelvioequity.com or email [email protected] or [email protected].
“We’re interested in adding value and educating people about what we do, discussing their objectives and goals and then deciding together if something we offer makes sense for them, now or in the future,” Devereaux said.
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https://www.argus-press.com/business/article_7b8d2aa0-ef29-5fa8-93f5-6215d74a7f21.html