Sycamore Urban Properties Buys
Stalled Multifamily Projects to Stabilize in Anticipation of
a Market Rebound
IRVINE, Calif. – March
30, 2009 – The market timing is near perfect for the newly
formed Sycamore Urban Properties, a firm that specializes in
acquiring and stabilizing new and converted condominium
properties that have fallen into distress since the housing
bubble burst.
The company recently made its first acquisition
– a 41-unit, newly constructed townhome development in
Rancho Cucamonga, Calif. – and is actively pursuing other
properties as the multi-family housing market begins to thaw
and become more active. Sycamore Urban purchased the note
for the Rancho Cucamonga asset in September 2008 and
successfully navigated through the bankruptcy process,
taking title to the property via foreclosure in early March.
“There are numerous quality properties out there
in various stages of completion that have fallen victim to
nothing more than bad timing, and we anticipate many of
these notes and properties changing hands via note sales or
bank REO sales,” said Sycamore Urban President Mitchell
Bradford, who founded the firm in early 2008 with company
CEO Lew Halpert.
“When the market returns to some level of
normalcy, shrewd acquisitions will lead to generous returns
over time - as long as the investor has equal portions of
patience, cash and courage,” Bradford added.
Sycamore Urban is positioning itself for a
market return in three to five years, when consumer interest
in such multi-family residential properties is projected to
be very high with new construction unable to meet the demand
at competitive prices.
The firm is working with financial institutions
to acquire notes and assets of distressed multi-family
property in California, Arizona and Nevada. In doing so, the
Sycamore Urban leadership will bring to bear nearly seven
decades of combined investment, development and homebuilding
experience.
Halpert is a 35-year commercial real estate
veteran, including 16 years of partner-level experience at
Kennedy-Wilson, a nationwide real estate services and
investment firm. He has been involved in the acquisition,
rehabilitation and resale of more than $3 billion dollars of
real estate throughout the United States and
internationally, including the acquisition of nearly 100
failed and/or fractured condominium developments during his
career.
Bradford brings 20 years of experience in the
homebuilding industry to Sycamore Urban, having served in
senior roles at companies including Kaufman and Broad,
Ryland, William Lyon Homes and John Laing Homes. He has
purchased and sold more than a billion dollars in property
in his career and entitled more than 5,000 residential
lots. Bradford has served as president of both the Building
Industry Association of Southern California and the Orange
County chapter.
Sycamore Urban also includes Vice President
Daniel Flynn, who has purchased, entitled and financed over
2,000 lots – as well as multi-family and mixed-use projects
- throughout Southern California over the past 12 years.
Flynn was most recently employed as vice president for John
Laing Homes.
The multi-family market in this region has seen
condominium prices decline by as much as 50 percent, and
many are trading at prices well below replacement value.
Once the market begins to recover, Bradford
said, there will be a strong demand for condos, particularly
in the more affordable price ranges, due to a limited
supply. Inflationary pressure on pricing for housing also is
expected as a result of the scarcity of developable land,
long and arduous entitlement approvals, lack of
infrastructure and shortages of labor and materials, he
said.
As the market begins recovery, Sycamore Urban
will be positioned to bring its properties to the market
either through bulk sales or as individual units sold
through traditional retail sales programs.
“The timing couldn’t be better for us,” Bradford
said. “We’re entering this market at a time of tremendous
opportunity – and when we emerge we hope to have taken
control of several thousand condominium units in
supply-constrained locations.”
Media Contact Only:
Genevieve Anton
Anton Communications Inc.
714-544-6503 p
714-368-3627 f
ganton@antonpr.com
www.antonpr.com
