Acquisition Strategey

Cavanaugh Properties acquisition strategy is to purchase under-performing, multi-family properties that present compelling value-add opportunities in select high-growth Southern California sub-markets. Our properties meet strict underwriting criteria for asset quality and return potential.   Acquisitions are made only when all our requirements are met.

Acquisition Criteria

  • Asset Profile: Value-add and core plus apartment properties in supply constrained markets
  • Location: B+ to C+ locations in select San Diego county sub-markets
  • Quality: B+ to C class properties in strong locations
  • Property Size: 10-50 apartments
  • Property Age: 1970+
  • Deal Size: $3-10 million
  • Transaction Type: Direct acquisition of existing operating properties
  • Target Returns: Preferred Annual Dividend of 8-10%+, Internal Rate of Return of 15%+ over a 3-7 year property hold period

Acquisition Process

Our typical acquisition process follows these steps

1

Identify Potential Investors

2

Identify and Underwrite Property

3

Negotiate Purchase Contract

4

Perform Due Diligence

5

Confirm Investor Members

6

Close Acquisition