Real Estate Owned (REO)/Foreclosures

Real estate owned (REO) properties typically require prompt reactions to opportunities presented and feature a general shortage of due diligence materials and deferred maintenance issues. Cambridge Hanover’s extensive experience, both with sellers and due diligence teams, and strong financial capabilities allow the company to pursue REO opportunities which are usually management and capital intensive projects. Examples of past REO investments include the Oakcliff Industrial Park in Atlanta, GA, Mason King Court in Washington, DC, One Parrott Drive in Shelton, CT, and Station Place in Darien, CT.

Case Study: Oakcliff Industrial Park (Atlanta, GA)

Located in Atlanta’s largest and most dynamic submarket, Cambridge Hanover purchased this 124,000 square foot REO property in 2013 from an insurance company at 55% of the last owner’s purchase price.  Cambridge Hanover was able to work with the local property manager and selling broker to obtain any missing information on the property during the due diligence period to ensure a timely closing.  Upon acquisition, the property, which was in need of cosmetic improvements, was 100% leased predominantly to tenants in the wholesale industry, primarily in the beauty and fashion accessory business.  In order to create value, Cambridge Hanover outlined a program to both re-brand the buildings and address cosmetic improvements, partnering with tenants to improve the facility’s image, visibility, and customer awareness.  Immediately upon acquiring the property, Cambridge Hanover approached tenants to lengthen their leases, eliminating downtime and creating stable cash flow.  Cambridge Hanover sold the property in 2015.  The Oakcliff Industrial Park is a classic example of Cambridge Hanover’s strategy to acquire ideally located distribution/warehouse facilities at advantageous pricing and to implement aggressive operating changes to achieve long-term value creation.