Our Target Investments include:
- Distressed properties and non-performing collateralized debt
- Cash flowing properties priced at or below replacement cost
- Strategic locations poised for future growth and appreciation
- Properties ripe for repositioning through entitlement, redevelopment, or re-tenanting
- Obtaining land and properties with substantial development potential
CG acquires properties at favorable prices and adds value through creativity and effective management. CG primarily targets properties with potential upside from rent acceleration, land appreciation, repositioning, or future development.
CG’s current acquisitions strategy includes development opportunities as CG offers a vertically integrated platform which benefits from extensive development management experience. Our development management capabilities play an integral role in creating value at the asset level.
Underwriting and Risk Management
CG puts all targeted acquisitions through a detailed due diligence and underwriting process to minimize risk and increase the likelihood of a successful investment. Prior to committing to an investment, we create a detailed pro forma model analyzing potential outcomes.
We rigorously test our assumptions by gathering market data, performing physical inspections of the underlying properties, engaging reputable consultants, and getting detailed cost estimates for all construction work to be performed.
Our due diligence process includes:
- Analysis of the supply and demand dynamics in the market
- Review of anticipated income, expenses and potential cost savings
- Future cash flow analysis and pro forma modeling
- Review of financial records, leases, and operating history of existing assets
- Environmental review
- Engineering inspection and survey review
- Architectural Plans review
- Title search and historic litigation history review
- Regulatory compliance, land use, zoning, entitlement, and permit review
- Financial structure and tax review
- Insurance and liability review