Pretty simple. At the M Tower investors have to buy at a minimum an entire floor. Each floor has 10 units ranging from 625 sqft to 1,050 spft. There’s only 44 floors to chose from, and they are all exactly the same except of course, for its height. Here are the Floor Plans in case you want to check them out. The cost of an entire floor is similar to the cost of a large luxury condo or penthouse unit. But the rental income is far greater, and the carrying cost way lower.
“In addition there are two key concepts behind the M Model. The power of Monopoly and the economies of scale driven by Volume.”
A building is in itself behaves as a Monopoly. By retaining control of an entire building, as opposed to holding individual units is how commercial real estate allows to maximize the asset value. In regular residential condo buildings the Monopoly is broken into single unit owners create internal competition among each other, and therefore by not being coordinated they end up giving away the locked in value in order to capture demand. Unified control keeps the value of the asset intact.
“In Volume there’s economies of scale and therefore efficiencies”By centralizing management across the overall inventory of the building, maintenance cost, management fees, and marketing expenses are reduced to a minimum, drastically improving the bottom line. Maintaining, managing, and marketing individual units drive up drastically the management costs.