Basis, not projection, creates the margin of safety.
Blackacre acquires distressed and special-situation real estate substantially below replacement cost and converts it to its highest and best use. The margin of safety is established at purchase — not assumed at exit.
We source through distress, where a motivated seller — not a market — sets the price.
- Court-appointed receiverships
- Bank REO and workout desks
- Special servicer dispositions
- Note sales and defaulted paper
- Maturity defaults and broken capital stacks
Obsolete office, hospitality, and special-purpose assets in central locations, acquired below replacement cost.
We concentrate on buildings whose current use has failed but whose location has not — central business districts, hospital-adjacent corridors, and transit-served downtowns. The discipline is singular: basis below the cost to build again.
Conversion to stabilized multifamily and mixed-use, designed in house.
Repositioning obsolete assets is a design problem before it is a construction problem. Our in-house conversion methodology — underwriting and architecture developed together — is the capability that distinguishes the firm and protects the basis advantage through execution.
Long-duration, income-producing ownership.
We are owners, not traders. Stabilized assets are held for durable income and appreciation rather than sold into the next cycle.