The Silicon Review
For some, entering the real estate market may seem intimidating. However, for Swapnil Agarwal, founder and CEO of Nitya Capital, it was a way to launch his career. Agarwal came from humble beginnings and bootstrapped his way from investing in a single multifamily property to running a company with an asset portfolio valued at over $2 billion. His recipe for success has been to focus on improving tenant quality of life in multifamily and office properties while concentrating on shareholder returns.
Typically, a real estate investment firm’s model is to raise capital, invest in properties and eventually sell the asset at a profit. Globally, there are countless real estate investment firms, however, Nitya Capital stands out from the rest. Not only is it unique from sheer quantity of multifamily units, making it one of the largest in Texas, but it is also differentiated by the investment platform it has created. Nitya Capital owns and operates its own property management company, Karya Property Management. This allows it to be vertically integrated within the space and creating maximum returns to shareholders. Additionally, Nitya is considered to be value investors, as Agarwal describes in the questions below. This investment perspective provides a better chance for significant returns that others may not see. By utilizing technology and a varied perspective, Nitya has seen an average 15% targeted net IRR to investors.
Within its current portfolio, Nitya oversees over 17,000 multifamily units and 2 million square feet of commercial office space. Nitya focuses on proprietary deal origination and leveraging the latest technology to maximize asset performance, ultimately achieving compelling risk-adjusted returns for investors.
Nitya Capital was founded in 2013, and it is based in Houston, Texas. For more information, go to nityacapital.com
In conversation with Swapnil Agarwal, Founder and CEO of Nitya Capital
Q. What is your unique approach to helping investors, especially during COVID-19?
Nitya Capital considers itself to be a ‘value investor’, meaning it picks assets based on intrinsic value, rather than fluctuations in the market. Nitya has seen success by identifying hidden gems in the market where others may not and making decisions based on value, rather than emotion. During the 2020 pandemic, many investors shied away from expansion. Nitya did just the opposite. Nitya’s market analysts kept an eye on the market and scouted good deals. In August, Nitya acquired two commercial office properties in Houston, Texas, with plans to renovate both. And the company isn’t done yet! As it looks to the future, Nitya hopes to find more deals to expand further.
Q. How do potential buyers and sellers of properties approach you?
Nitya’s internal team works hard to scout new and innovative ways to acquire properties to enhance its portfolio. Earlier this year, the company launched Nitya Realty, an internal brokerage team actively working towards finding the next opportunity. Nitya Realty is actively hiring and expanding as the company grows.
Q. Tell me more about your rental assistance program, helping people impacted by the coronavirus pandemic.
When my wife Deepika Agarwal and I started Karya Kares, we knew that there were a lot of people who could benefit from the nonprofit, often living in their multifamily apartment complexes. When we saw the need, we knew we needed to step up and help. We hope that our programs help bring so much more than just a place to live for our residents, but also a salvation for a better life. Karya Kares believes in strong communities and building strong foundations with tenants. It has been able to offer rental assistance for up to $1000 off one month’s rent to recipients experiencing financial fallout from the pandemic.
Q. Do you have any new services ready to be launched?
Nitya Capital has many exciting plans for the future. The company continues to grow in both acquisitions and opportunities for investors. We want everyone to have a chance to diversify their personal portfolio and tap into the commercial and residential real estate market. We are working towards giving more people the opportunities we find. For more, go to nityacapital.com
Q. What are your trajectories for the next 5 years?
Over the next five years, Nitya Capital and Karya Property Management plan to continue with expansion efforts. The companies want to increase ROI to investors and add more benefits for tenants. We are clear on our plans to benefit our stakeholders. “This is just the beginning!”
Meet the leader behind the success of Nitya Capital
Swapnil Agarwal, Founder and CEO: Swapnil immigrated to the U.S. from India at age 15. His upbringing and determination took him from handing out pizza flyers around Houston, Texas to starting his own venture with only $300,000 of his own savings in his pocket. In 2013, he founded Nitya Capital, a real estate investment firm, which began by purchasing one multifamily housing property. Through sweat and hard work, Agarwal renovated the neglected property and increased the value for tenants, without increasing the rent. Turning affordable housing complexes into desirable properties increased the occupancy rate and overall value. Agarwal was able to sell that first property at a significant profit and then he was hooked! He continues to repeat the proven concept, and in tern, continues to increase value. As the business grew, he acquired more properties, more outside capital and turned that modest investment into an empire. In 2015, Agarwal started Karya Property Management to internally manage the properties to simultaneously increase profit margin and maintain a tighter control over the success of the properties. Today, Nitya’s portfolio includes multifamily housing and office spaces, valued at over $2 billion in assets. Agarwal focuses not only on his success in business but also giving back. With partners, he started Karya Kares Foundation, a nonprofit with the dual-mission of preventing gun violence in school and working with low income families with their rental assistance program. Especially during the 2020 coronavirus pandemic, Agarwal wants to make sure tenants feel safe and secure living and working on his properties.
“We want to find the right properties at the right price as we continue to grow. As we look towards the future of Nitya and Karya, we know that there are deals out there. We have a pulse on the market to find the right ones.”