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