Capital Real Estate

Acquisitions

Currently, CRE is pursuing an acquisition strategy that focuses on multi-family developments with a minimum of two hundred units. Given the current underlying characteristics of the market in the Colorado front range, CRE believes the company will be able to find both individual properties and portfolios that will meet the company's underwriting criteria for both immediate cash flow and long term yield.

To date CRE has assembled a $120 million portfolio comprised of 8 properties and 1,700 apartment units. In 2010 CRE expanded its position in the market by acquiring two properties with a value of $30 million. No other Denver based investment group was able to match the CRE performance in that year.

The CRE management team calls upon its combined experience of over 120 years to identify attractive properties. The team is in a position to analyze how best to take advantage of opportunities to create value by upside through either improved property management, improvements to occupancy and expense control, rehabilitation and revitalization of the immediate vicinity, or revenue enhancing capital upgrades.

Within the market, multi-family properties are generally divided into A, B, and C categories. Properties fall into these classifications by a combination of size, location, age, and quality. CRE has found outstanding properties to acquire in each of these categories. Our decision to move forward with the purchase of a property ultimately rests on our firm belief of the long term viability of the investment.

Each acquisition is placed in a separate investment entity and investors may review the property and the financial analysis to determine its suitability for that investor's goals. For investors seeking to make large commitments in a particular property or portfolio, CRE has been adept at finding a flexible partnership structure for a joint venture that will best meet the needs of CRE as the sponsor as well as the yield and management requirements of the investor.

At CRE, we believe that the current recession presents an unique opportunity to acquire apartments at bargain prices. Our strategy is to purchase apartments with strong fundamentals of location and design in depressed markets with solid prospects for recovery. Low prices, attractive financing terms and our management expertise will allow us to produce strong initial cash returns and significant upside as markets recover. Our focus is on the markets we know best.