Transaction Types

• Distressed Situations, Including Lender and/or Developer Divestitures
• Sectors and Markets with Improving Fundamentals
• Performing and Non-performing Loans
• Urban Housing
• Asset Repositioning/Turnaround

Cronus Capital seeks to identify markets and property sectors with positive underlying economic and demographic trends. As the quality of a sector’s or market’s fundamentals change, Cronus Capital is able to shift its investment focus among the various markets and asset classes. This focus on fundamentals allows Cronus Capital to benefit 10 from the rent growth and lower risk profiles of improving sub-markets or sectors, while accessing the liquidity of highly desirable markets or sectors that have reached their peak

Cronus Capital seeks to identify markets and property sectors with positive underlying economic and demographic trends. As the quality of a sector’s or market’s fundamentals change, Cronus Capital is able to shift its investment focus among the various markets and asset classes. This focus on fundamentals allows Cronus Capital to benefit 10 from the rent growth and lower risk profiles of improving sub-markets or sectors, while accessing the liquidity of highly desirable markets or sectors that have reached their peak

Cronus Capital believes there are significant opportunities to invest in suburban office properties in market locations that are poised to experience substantial job growth over the next five to ten years. Office properties were one of the sectors of the real estate market most impacted by the most recent recession in the corporate sector. Cronus Capital believes that the slow pace of recovery in the office sector is due partly to the protracted job market recovery and to the considerable amount of sublease space still available. However, as the job market continues to improve and the amount of sublease space continues to fall, Cronus expects that the office sector will recover strongly. New office supply remains subdued in most markets, and the long lead-times and increasing construction costs for office development should provide an opportunity for a rebound in rents before the supply pipeline can respond to increasing demand.

Significant arbitrage opportunities are usually created by distressed assets, sellers, markets, or property types, because they typically attract fewer participants and are frequently mispriced by the marketplace. Cronus Capital’s ability to analyze, structure, and close rapidly on complex transactions provides a significant competitive advantage. The Principals are experienced in recognizing opportunities in, and creating value from, difficult situations that other investors may avoid.

Cronus Capital will target underperforming investments that can be acquired at attractive prices and have the potential to be upgraded to institutional quality through renovation, leasing, or other means. In addition, the re-development of assets that should be converted to another use may become more compelling in locations with improving fundamentals and a scarcity of developable land. Cronus Capital has the ability to identify assets whose previous owners have underperformed the market, poorly positioned the asset, not made necessary capital improvements, or overleveraged the asset. Upon acquisition of an investment, Cronus Capital will rapidly develop a repositioning plan to improve the property, upgrade the tenant profile, increase occupancy, and maximize the profitability of the asset.

Corporations often face pressure to divest non-strategic assets, including real estate, in order to re-deploy their investment capital. Cronus Capital has the ability to acquire properties from corporations expeditiously. Additionally, Cronus Capital believes there are opportunities to acquire real estate that has come into the possession of lending institutions as a result of the defaults of borrowers. The Principals have a competitive advantage in sourcing such opportunities as a result of their extensive previous work experience with various financial institutions.