ational Realty Group's (NRG) approach to the apartment industry involves creating or adding value to maximize returns for investors through either the development or rehabilitation process.

Tills strategy has several important features:

1. The value creation usually occurs during a short period of time.
2. The profit created is not dependent on inflation.
3. Acquisition opportunities are available at below market rates.
4. Management-intensive expertise is required, which creates an entry barrier for other competitors.
5. Rehabilitation offers a seasoned building in an established location.

Opportunities are sought in properties that are under-managed and not performing to their full economic potential. These may include apartment complexes with dated exteriors or lacking in certain modern amenities. Such properties, although structurally, can often be acquired at discounted prices because of these cosmetic deficiencies.

Upon acquisition, NRG's skilled in-house staff undertakes the upgrading process, after which a rent increase program is instituted. This aggressive rehabilitation program has allowed NRG to raise the annual rents on its properties at rate well in excess of the average for Southern California apartments and inflation.

In-house financial specialists analyze cash flow requirements to ensure completion within budget, as well as on time. Always evident is a commitment to maximum value for each dollar spent.