As their capitalization has strengthened, banks are now able to take write-downs on land underwritten on peak housing and commercial prices. Avanti seeks to acquire through negotiated transactions rather than participate in auctions.
Avanti focuses its investment activities primarily on
- Three- to eight-year residential and commercial land, including parking lots and “teardown” buildings, acquired through short sales, recapitalizations, loan purchases and outright acquisitions
- Community Development District (CDD) bond purchases
- Land financing (three- to seven-year first and second mortgages, non-recourse loans)
Before closing an acquisition, Avanti conducts an extensive due diligence review on each prospective property, including market research, land use review, engineering and environmental evaluations, and legal review. Once closed, each site is managed and maintained in a ready-to-use state, with periodic physical inspections, infrastructure improvements, security, and income management.