We take an honest approach toward each of the individual deals and refuse to financially engineer pro formas to make any deal perform outside of reality simply so we can earn fees at the expense of solid returns
Irvine, CA (PRWEB) May 22, 2012
Southern Pacific Group, Inc. (“SPG”) announced the closing of 260,000 square feet of bank-owned commercial property in four separate deals. The acquisitions included a 43,000 sf retail property in San Diego County, a 730-unit self-storage facility in the Inland Empire, California, a 127,000 sf office building and 10,500 sf strip retail property, both outside of Atlanta. SPG led the acquisitions as part of its effort in providing long-term, value-add assets for its investors and partners. “We continually tout the importance of understanding what our clients- our investors, are looking for. We take an honest approach toward each of the individual deals and refuse to financially engineer pro formas to make any deal perform outside of reality simply so we can earn fees at the expense of solid returns,” commented Daryl Schwartz, co-founder of Southern Pacific Group.
The portfolio of assets comes as SPG shifts its capital to a more balanced strategy. “We have begun to partner with investors who are looking to place capital in less risky opportunities for longer hold periods. Typically, we have seen deals that require much less capital-intensive attention and generally face stabilization issues as a result of general economic conditions. These partnerships of longer-term, lower-cost capital, enable us to ultimately pay comparatively strong pricing levels to our banking and financial partners,” said Schwartz.
Southern Pacific continues to maintain a significant deal pipeline in its Investment Management business that presents a number of unique investment options for their investors. “We recognize that we serve both the financial partners with whom we buy assets from and our investors which entrust us with their investment capital. By maintaining a sizeable deal pipeline, we are able to selectively choose one-off loans or properties or portfolios of assets that fit our need for current reasonable yield and solid long-term capital appreciation. Our investors are particularly excited about the opportunities to continue to invest in a prudent and disciplined strategy, especially during a time when prevailing return levels and investment alternatives aren’t great,” remarked Schwartz
About Southern Pacific Group
Southern Pacific Group is a full-service real estate investment firm that provides Investment Management and Advisory services for its investors and financial partners. Southern Pacific seeks to preserve investor capital and deliver exceptional risk-adjusted returns through strategic investments in opportunistic commercial real estate debt and equity.
Though Southern Pacific Group seeks to capitalize on short-term, high-yield opportunities, the firm holds a long-term view of real estate and applies its view in developing and growing sustainable wealth for itself and partners.
The management team possesses complimentary backgrounds and shares a disciplined approach to the due diligence, acquisition, and management of real estate and real estate-related assets. Spanning the last three decades, the team has underwritten more than $5 Billion in real estate transactions, and acquired, managed, or developed over $400 Million in real estate and real estate-related investments. The team combines an expertise in the sourcing, underwriting and management of both residential and commercial assets.