CALTECH CAPITAL

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ACQUISITION PARAMETERS

Caltech is a value focused investor and seeks to acquire assets—either through debt or equity positions—at substantial discounts to replacement cost. Caltech will consider JV structures and partnership recapitalizations as well as outright purchases. We focus on California markets that combine (1) high natural or manmade barriers to entry (mountains, oceans, rivers, environmentally protected areas, historic districts, height restrictions) (2) affluent housing, and (3) strong demographic and job growth.

Target Properties

Caltech acquires primarily Class A and B properties that include office (suburban and CBD), R&D, office-service, hospitality, multifamily, parking garages, mixed-use and in-fill/high street retail. Target properties often have the following characteristics:

Properties in need of stabilization, repositioning, recapitalization or redevelopment
Properties that are underperforming in markets where near-term value can be added through superior property operations and aggressive leasing
Properties in good locations that are no longer competitive due to poor maintenance or properties that are functionally obsolete and can be fixed or repositioned for alternate use
Properties with non performing bank or CBMS debt where the debt can be purchased at a steep discount and/or through friendly foreclosure
Net leased properties with less than five or less years remaining on the lease term
Income producing development sites, such as parking garages and lots

Transaction Characteristics

Investment Size: Minimum $1.0 million; preferred $10.0 million to $25.0 million

Targeted Returns:

Value, value-add and opportunistic type returns Target Leverage: 50%-65% LTV

Geographical Coverage

California, Arizona, Nevada, Oregon