Investment Strategy & Acquistion Criteria | CJ Park

Our investment strategy has been perfected over the years to manifest the simple vision of Mr. Farhadi: Provide a stable portfolio of real estate assets where investors can reap the benefits of high profitability while maintaining a low risk factor. We place a premium on protecting and preserving our capital.

Our principal objective is to acquire well located income producing assets at below replacement cost.

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Our principal objective is to acquire well located income producing assets at below replacement cost. Keeping that as our main focus we perform extensive market research, tenant studies, and property due diligence to minimize the risk associated with any transaction. CJ Park and Associates has an astute ability to identify opportunities, and our perfected marketing, leasing, and management practices allow the property to further excel throughout the life of the investment. We understand how to balance the needs of the investors with the needs of our tenants to maintain a profitable environment for all involved.

In Creating our investment strategies, CJ Park and Associates also considers the following key criteria:

  • Prime Location/Demographic: Location and Demographics are the foundation of any property. We seek properties that have a high demographic range in the 1, 3, and 5 mile radius, all with a good average income base. These markets have strong underlying economic fundamentals, which lead to declining vacancy rates, and overall positive performance.
  • Price: CJ Park and Associates' goal to acquite assets at below replacement costs.
  • Strong Tenancy: Particularly important in the due diligence process is making certain that the property is leased to credit worthy tenants. We make numerous visits to the asset to meet with the shop owners, and national, and regional tenants. Leasing risk can be greatly redcuced by diligent tenant roster evaluation.
  • Upside Potential: In our analysis process, we aim to identify an exit strategy for the property. We create a so-called "line of attack", and try and stick to that plan for the life of the property. Before we even acquire an asset, we make sure to have several options for how and when to dispose of it. This process allows us to diversify our acquistions between long and short term hold.
  • Financing: Financing is a major challenge for investors. Our excellent relationships with the financing community enable CJ Park and Associates to obtain competive financing for transactions.

And once we have acquired the property, we always make sure to implement the following practices:

  • An aggressive leasing program adapted to the appropriate tenant mix, demographics, and market condition of the property.
  • Highly competitive prices that offer tenants the best value in the market. We provide great rental rates and build out options to ensure that the tenant will have a successful business.
  • Making sure to constantly address and cultivate our relationships with national and regional tenants.
  • Structuring our leasing programs to fit in with our "line of attack". We aim to maximize upside potential with rental escalations and step ups.
  • Keeping our CAM charges as low as possible. CJ Park and Associates prides itself on managing some of the most beautiful centers at costs that are so low, even the managers in the area are surprised.
  • When applicable, we annually protest the property taxes.
  • Type: Neighborhood or community retail centers
  • Geographic Prefernce: Continental US
  • Size: $1-$25 million (will consider larger transactions)
  • Building Size: 40,000 square feet or larger
  • Location: A/B densely populated areas
  • Physical Quality: Class A/B

We welcome all submissions. Please contact the Director of Acquisitions Claudine@cj-park.com