INVESTMENT CRITERIA

 

INVESTMENT ATITUDE

Investment Criteria Pic

Arx Capital Group acquires primarily multifamily, office, medical office, retail and other investment real estate on behalf of Arx Real Estate Funds.  Multi-family housing is our mainstay and Southern California is our main geography of focus; but we do look for opportunistic commercial properties all over California and the country that fit our financial parameters, especially where the short-term profit potential is compelling.

Arx Capital Group acquires turnaround assets (i.e. distressed, poorly managed, physically neglected, high vacancy or low rents), high-yield assets (i.e. timing/motivation driven), and we engage in arbitrage (short term profit taking) on all types of assets, including discounted notes and originating “hard-money” loans.  While our “bread & butter” opportunities lie mainly in the turnaround assets, we do entertain acquiring stabilized properties that are located in “B+” or better locations for adequate cap rates, as our yield requirements would be prohibitive if we bought these properties with high risk and overpriced. Our belief is that you make your money when you buy something, not when you sell it.

While we may not always be the highest bidder, we differentiate ourselves by offering quick diligence review periods and fast closings, as well as taking on properties that are challenging, and oftentimes hard to get financed by others. It is not uncommon for us to place our earnest money “at-risk” at Contract, proceeding without due diligence, saving the seller the grief of going through multiple buyers before a closing actually occurs. And depending on the size of the deal, we have the ability to close in as little as a week and purchasing a property all-cash, without having to rely on financing to close.

We are actively looking to add to the portfolio, and welcome your submissions. Please keep the following themes in mind when submitting properties: (1) Upside through re-development or lease-up, (2) High Yield, or (3) Low Price/SF relative to the market. These ideas best sum up what Arx Capital Group is looking for.