G8 Capital Targets Another $80m in REO Buys for 2010
After purchasing 700 multifamily units in Q210, investment firm G8 Capital plans to invest another $100m in real estate this year, with $80m spent purchasing REO. Since 2007, G8 Capital has bought more than 2,000 REO properties and whole loans from major banks and servicers in the US. The firm said it is on track to invest more than $100m in 2010, buying residential and multifamily properties, condo developments, mobile home parks and senior living facilities. Evan Gentry, president and CEO of G8 Capital, told REO Insider the REO acquisitions would come through a combination of bulk, single-family properties or more individual multifamily purchases. “Our approach to the REO properties we acquire varies based on the location, asset type and seller,” Gentry said. The firm, based in California, then sets out to renovate and resell the properties to retail buyers, reselling smaller bulk portfolios to local investors, and even holding onto some for longer-term rentals, Gentry said. He added that the firm will hold the multifamily properties for longer-term investment. The firm acquired three multi-family apartment complexes in the Dallas-Fort Worth area in Q210. It closed two of those deals in one week. G8 Capital said it would continue to target opportunities in the Sun Belt states and Texas, which, according to G8 is “the strongest economic climate in the country.” According to Foreclosure Listing Services (FLS), which measures foreclosure filings in the Dallas-Fort Worth area, filings are down 17% for the county foreclosure auctions scheduled for August. G8 Capital plans to renovate and improve the assets, change property management strategies, and stabilize the properties to qualify for long-term debt. “We are successfully negotiating deals in real estate markets throughout the country from the West Coast to Florida, and we look forward to pursuing future acquisitions in the Texas real estate market which offers long-term sustainability and growth,” Gentry said. Write to Jon Prior.