Investment Strategy
Institutional-grade transactions conducted by investment experts.
Community Housing Development seeks to maximize upside by focusing on the entitlement of land and the repositioning of commercial assets, where it believes it has the most control and return opportunity.
Real Estate Program Strategy
- A) Entitlement of raw land
- B) Commercial real estate with land or entitlement elements
- C) Re-entitlement of land that has existing income-producing components
- D) Commercial real estate with no land or entitlement elements
Valuation Strategies
(1) Sources may include corporations, institutions, organizations, distressed, owners, and others.
(2) Repurposing assets include, but is no limited to re-entitling or redeveloping raw land or modifying the use of a commercial asset. Repositioning assets involves the changing of the position of the property in the market place (e.g. rehabilitate the asset and/or improve operations.) Recapitalizing assets include the refinance of an asset to potentially provide a more favorable capital structure.
What are CHD’s Avenue for Valuation Creation?
There are several ways to create value when investing in a real estate asset.
The below list highlights some of the techniques CHD may utilize to accomplish value creation.
Repositioning Modifying an asset’s current use to better fit current market demands. For example, if a portion of the property is a vacant former big box retailer, we can segment the space into several smaller retail spaces.
Rehabilitation Making physical improvements to the property. This allows CHD the opportunity to elevate a property’s status in the market by improving physical defects an making capital improvements.
Recapitalization Assets that are financially unstable can often provide CHD the opportunity to adjust the in-place financing, achieving better loan terms or a different capital mix, which may make the property more stable overall.
Entitlements Obtaining land use approvals on raw land that allow a property to be developed in a specific manner, and ultimately sold to a builder.*
Repurposing Changing to a higher and better use the through re entitlement or other methods. For example, re-entitling land with existing infrastructure, which will allow for redevelopment and sale to a builder.
The above strategies are primarily, but not exclusively, utilized for raw land, improved land with existing infrastructure, assets that have existing commercial use, or assets that have a combination of a commercial and other components. These strategies add value to those assets achieving their highest and best use, at which time they will be sold.