While the Real Estate Market Struggles, Conix Acquires $112M of Distressed Real Estate in a Record Second Quarter
TUCSON, Ariz., July 18, 2012 /PRNewswire/ -- While many real estate investment companies are struggling with the difficult market, one firm is leveraging technology to achieve an exceptional level of success.
Conix Inc., a distressed real estate investment company, acquired a record 542 residential properties and 1,414,893 square feet of multifamily living and commercial self-storage space in the second quarter ending June 30th. This is approximately a 26% increase over their previous quarter's record-breaking results.
In total, Conix added over $112M of distressed real estate holdings in the past three months.
"Even in a distressed market, there are key opportunities available for people with a system for finding them," said Court Gettel, Conix's chairman. "Our proprietary technology system provides us a way to locate these opportunities in high volume."
Conix uses a strategy of locating distressed properties, acquiring them and putting the property through a revitalization process that restores the property to usable condition. These properties are then resold, or held and managed for positive cash flow.
"We focus on opportunities that make a difference in their communities, while also making a significant return on investments," said Cash Doye, Managing Director of Conix Capital Markets. "We use a range of fully compliant programs, funds and partnerships that work with high-net-worth individuals, family offices and institutional investors."
A recent example is the acquisition of two apartment complexes directly from the institutional seller. The properties were in poor physical shape. Occupancy was less than 50%. Actual paying occupants were less than 30%.
After acquiring the properties, the Conix team began a program of physically upgrading the apartments. A strong property management system was put in place. In less than 120 days after acquiring the properties, paid occupancy was at 94% with a waiting list of additional interested occupants.
This occurred in a market with one of the highest vacancy rates in the country.
"Part of the attraction for investors is that the success of these investments are driven by helping people fill real needs," said Doye. "These investments are not linked to the usual stock and bond market that is often fueled by simple speculation."
Another project involved a pool of 56 single-family homes that were acquired from a major financial institution. The properties were revitalized and sold in an average of 128 days at a significant profit. On the commercial side, a 172,000-square-foot retail center was acquired in Houston.
Key factors in the success in this project were identifying a viable opportunity and the recent lack of inventory on the Multiple Listing Services (MLS). This was further enhanced by the number of large institutional investors buying and renting homes. This reduces the number of homes that would be on the market.
"The market shifts over the past year are making what has been a highly successful system even more successful," said Gettel.
Founded with a philosophy of social responsibility and helping the community, the company supports homes for children in Nicaragua and India. Conix is also the single biggest supporter of the Cystic Fibrosis Foundation in Arizona.
Based in Tucson, AZ, Conix has offices in La Jolla, CA; Los Angeles, CA; Phoenix, AZ; and Portland, OR. There are plans for future expansion on the East Coast and internationally.
For more information about Conix, go to: http://www.ConixCapitalMarkets.com
The company is located at 3915 E. Broadway Blvd, #400, Tucson, AZ 85711, (520) 795-0900
Conix Capital Markets
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