Tower's acquisition strategy is to identify quality multifamily properties in well-established markets consistent with Tower's existing portfolio. We concentrate on assets that offer the potential to increase cash flows (and thereby value) by adding our management and operating skills through the execution of our property specific operating strategy. Purchases are accomplished through either cash or a tax-deferred exchange of partnership units in Tower Management Service, L.P. for the property, subject to its existing financing (see Exchange Program).

With a 20 year track record of acquiring and operating multifamily properties, Tower has demonstrated its ability to: (i) identify strong markets with long term growth potential and (ii) identify properties within those markets to which Tower can improve the operating performance by applying its asset and property management philosophy. Tower employs a disciplined approach to valuations based on the actual operating results of Tower's assets as an indication of the yields that a potential acquisition target will generate.