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Pacifica Capital Group’s investment approach has been to acquire or develop income-generating properties at opportune times during shifts in market cycles, build a portfolio of quality assets, and ultimately dispose of these assets when the market has recovered. Exceptional value is created for investors through Pacifica’s expertise in identifying underappreciated markets primed for recovery. In previous real estate downturns, Pacifica capitalized on market imbalances in Southern California by purchasing property significantly below replacement cost and selling its holdings near the height of their respective cycles.
Over the past five years, Pacifica Capital Group has held a strong belief that much of the real estate market, particularly in Southern California, has been highly overvalued. Pacifica profitably exited its most recent investments through a portfolio sale near the top of the market, in Q4 2004. Since that time, Pacifica chose to maintain its investment discipline and instead focus on fee-based projects while refraining from pursuing new acquisitions or developments. In doing so, the firm was able to successfully navigate through the aftermath of the real estate market’s crash and is now ideally positioned to capitalize on distressed investment opportunities.
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