Acquisition Strategy

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


Identify Potential Investors


Identify and Underwrite Property


Negotiate Purchase Contract


Perform Due Diligence


Confirm Investor Members


Close Acquisition