LOS ANGELES—If allocations are any indication, we are in for a strong year. Cresta Properties is one example of companies ramping up acquisition volumes in 2017. This year, the firm is nearly doubling its acquisition volume with plans to expend $350 million and focusing on opportunistic transactions.
The firm says that emerging markets and increased demand is fueling the boost this year. Cresta will look for opportunities across the country, as it has in the past. “We invest and have invested along all asset classes and will continue to do so,” Reuben Robin, co-founder of Cresta Properties, tells GlobeSt.com. “We are eager to continue on our top-heavy value-add multifamily strategy in major markets, but will continue to buy high street destination retail in L.A., San Francisco, and New York and in A+ office markets that have a creative demand and are dense and urban.”
Last year, Cresta acquired $175 million in properties, and $100 million in 2015. The firm will use a combination of debt and equity to make the purchases, with 50% of the equity from Cresta and its pool of investors. The firm will continue to focus on opportunistic deals, but, this late in the cycle, will be selective to ensure deal quality. “While we are being very selective and cautious we continue to source the right opportunities simply because we are long term holders. Our strategies aren't bound to any 3- or 5-year exit plans,” says Robin. “While we test plan for exits, most if not all our acquisitions are planned for the long run. We are focused on buying generational pieces that we would love to own for 10, 15, or 20 years out so the point at which we're in in the cycle doesn't apply.”
Of course, these deals are very competitive. Cresta relies on professional relationships to source many of its deals. “Sourcing off market opportunities removes that element of competition and makes it easier to act,” says Robin. “However, I have had to write non contingent offers or have had to write offers with non refundable deposits just to beat out some of the competition.”
LOS ANGELES—If allocations are any indication, we are in for a strong year. Cresta Properties is one example of companies ramping up acquisition volumes in 2017. This year, the firm is nearly doubling its acquisition volume with plans to expend $350 million and focusing on opportunistic transactions.
The firm says that emerging markets and increased demand is fueling the boost this year. Cresta will look for opportunities across the country, as it has in the past. “We invest and have invested along all asset classes and will continue to do so,” Reuben Robin, co-founder of Cresta Properties, tells GlobeSt.com. “We are eager to continue on our top-heavy value-add multifamily strategy in major markets, but will continue to buy high street destination retail in L.A., San Francisco, and
Last year, Cresta acquired $175 million in properties, and $100 million in 2015. The firm will use a combination of debt and equity to make the purchases, with 50% of the equity from Cresta and its pool of investors. The firm will continue to focus on opportunistic deals, but, this late in the cycle, will be selective to ensure deal quality. “While we are being very selective and cautious we continue to source the right opportunities simply because we are long term holders. Our strategies aren't bound to any 3- or 5-year exit plans,” says Robin. “While we test plan for exits, most if not all our acquisitions are planned for the long run. We are focused on buying generational pieces that we would love to own for 10, 15, or 20 years out so the point at which we're in in the cycle doesn't apply.”
Of course, these deals are very competitive. Cresta relies on professional relationships to source many of its deals. “Sourcing off market opportunities removes that element of competition and makes it easier to act,” says Robin. “However, I have had to write non contingent offers or have had to write offers with non refundable deposits just to beat out some of the competition.”
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Kelsi Maree Borland
