The economic deterioration of the national real estate markets, the credit markets, and the associated liquidity crisis are now presenting significant investment opportunities in the southwest. We expect distressed and attractively valued real estate related investment opportunities to continue through the next 24-36 months.  While this cycle presents significant structural challenges, not witness in previous downturns, managements extensive experience, combined with the positive long-term growth dynamics of the southwestern United States (Arizona, Nevada, Southern California) lead management to believe that acquiring exposure to such real estate investments during this stage of the down cycle, should provide attractive returns for keen investors.

Our Approach 

The Company seeks to utilize its experience to identify, purchase and/or finance investments in undervalued real-estate and related assets. The company’s investments are based on the following investment fundamentals:

1. Distressed Real Estate – Source undervalued/distressed real-estate from local & regional banks, builders, or developers.
   • Stalled Projects- Leverage our expertise as developers and builders to quickly underwrite, and acquire semi-complete projects which have stalled due to lack of capital.  Complete site preparation with idle labor force, and sell to developers when cycle turns.
   • Land Banking- Acquire entitled or un-entitled land set for future residential, multi-family, or commercial projects.  Reposition if necessary. Sell piecemeal or entirely to small-to-medium sized developers when housing climate improves, and the cycle turns.
   • Distressed Commercial Assets- Acquire completed commercial and other real estate related assets for sale at an attractive price due to low cash flow or depleted reserves. Low leverage, lease up, and exit when cycle turns.
2. ‘Last-Resort’ Equity / Mezzanine Financing - Underwrite, model, and structure equity, mezzanine investments with distressed borrowers and local banks we have relationships with.  Take majority equity positions, re-capitalize and re-solidify lender relationships. Debtor in possession Arizona, or DIP financing Arizona.
3. Non Performing Notes – Purchase 1^st position, non-performing notes collateralized by assets fitting SWN investing criteria, (usually at steep discounts), with an eye towards workout, deed in lieu, or foreclosure.

Exit Strategy

Unwind investments in 2-4 years as favorable markets and favorable terms return.  The Company seeks to utilize its experience to identify and finance investments in undervalued real-estate and The Company employs strict investment valuation criteria in selecting real estate related investment assets and will only consider an investment, transaction or development project that will generate an above average internal rate of return (IRR).