Caltech is a value focused investor and seeks to acquire assets—either through debt or equity positions—at substantial discounts to replacement cost... READ MORE


Caltech's core philosophy as a real estate investment firm is to only invest in locations with true competitive advantage and that fit into our value model. This is defined as those locations with: (a) strong natural and political supply constraints to limit new competition, (b) strong demand fundamentals supported by demographic research, including strong job and population growth, and (c) an abundance of affluent housing. These high growth/high barrier markets have traditionally outperformed other real estate markets. Furthermore, we only buy assets on a value basis - that is below their long-term depreciated replacement cost - in order to insure adequate risk-adjusted returns.

South California has many of these neighborhoods along its oceanfront, while Nevada and Arizona have some potential markets that fit these criteria. Caltech has a special expertise in these markets that will enable it to take advantage of the present market down cycle.

Understanding the intricacies of real estate's highly cyclical nature, Caltech believes that market timing is the fundamental key to generating required returns. We rely on six core tactics:

  1. We are dedicated, but cautious value-investors looking for out of favor asset classes and market in order to minimize capital competition
  2. We are research-driven, focusing on exploiting information advantages in order to capitalize on inefficiencies in markets
  3. We continue to mine and develop our proprietary data base of properties that we believe have the best opportunity for strong risk-adjusted returns
  4. We believe in creating strong local operating knowledge and expertise by developing our operating platform
  5. We believe in maximizing our reach through new and existing relationships with brokerage firms and key information sources
  6. We stay within our expertise – apartments, single house development projects, office buildings, limited mixed-used commercial space, and urban retail

We are now in a position to acquire assets to take advantage of the current down cycle.


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