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By Christine Gaylican, Opalesque Asia:
The Stella Capital Real Estate Opportunity Fund has recently been launched in San Francisco, California to acquire underperforming office, industrial, residential, and special purpose property in the area and in other western states.
The property market downturn in the United States encouraged this new investment company to engage in acquiring pieces of property including those in the secondary markets that have an acquisition price between $3m to $15m.
The company fact sheet indicated that projects that Stella Capital was acquiring "should exhibit favourable prospects for improving rents and property values through an active property renovation and repositioning."
According to a report in the Wall Street Journal quoting the California Mortgage Bankers Association, "the delinquency rate on California commercial loans estimated to be worth $60 billion has more than doubled in the second quarter of 2009."
To assist in executing its strategies, Stella Capital has established a regional network of niche-driven operating partners who provide superior redevelopment, management, market knowledge, and due diligence capabilities. These partners are also key sources for new transactions, said company investor relations executive John Marshall.
"We are attempting to buy properties in the bottom segment of a real estate cycle, if our timing is off slightly, I'd rather have the cushion of owning a high ...................... To view our full article Click here
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