(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
SANTA MONICA, CA-Del Rey Urban Capital LLC, part of Urban Group Cos., is moving aggressively into acquisition mode with plans to invest more than $10 million in distressed, foreclosed and at-risk residential properties in Southern California. The real estate investment, fund-management and advisory-services firm with a focus on distressed residential properties in this region has acquired hundreds of non-performing notes and residences since the launch and initial closing of its first fund in 2010 and is looking to add more similar properties to its roster.
“Unfortunately, property owners are continuing to struggle financially due to the economy and may be unemployed, underemployed or experiencing a slowdown in business, causing them to be unable to meet their obligations,” said Scott Chaplan, CEO and managing director of Del Rey Urban, in a prepared statement. “We will pay owners at-risk of foreclosure cash for their homes or distressed multi-unit properties, and hopefully they can avoid the foreclosure process and preserve their credit rating and assets.”
The firm recently launched an income fund with an acquisition and rental strategy for properties primarily in California and Houston, and the first properties in this fund have already been acquired. Del Rey Urban is acquiring single-family homes and multi-unit properties in urban and suburban markets throughout Southern California as the economic continues to move at a sluggish pace and uncertainty remains prevalent. As a means of financing this endeavor, the firm has launched several new private-equity real estate income funds.
The company, which also has a successful track record for refurbishing and completing unfinished distressed properties for resale, is interested in purchasing foreclosures from banks and other lenders, including homes, multifamily assets or distressed projects. “We have initiated our acquisition sequence of rental property and are analyzing multiple pools of properties for this objective,” Chaplan said.
As GlobeSt.com recently reported, foreclosure filings—including default notices, scheduled auctions and bank repossessions—decreased 7% in September, a reduction of 16% from September 2011, according to RealtyTrac’s US Foreclosure Market Report for September and the third quarter of 2012. September’s total was the lowest US total since July 2007.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
