Company principal Stewart Hsu company principal tells GlobeSt.com that CONTI liked both the asset and the city. So when the opportunity arose to buy the note, and then foreclose on the property at 10534 Beechnut St., the Dallas-based company took it.

Hsu explains that the former owner had the asset for about five years, ran into problems and stopped making payments. The lender approached CONTI to ask if the company was willing to buy the loan at a discount.

"Now we have our team in there, fixing it up," Hsu says. The "fix-ups" involve interior renovations and a redo of the exterior, as well as parking lot repairs, signage, landscaping and a redo of the leasing office. CONTI plans a $1.4 capital investment into the asset.

CONTI continues seeking out viable assets, mainly distressed with a value-add component, in major Texas cities including Houston, Dallas, San Antonio and Austin. To help fund some of those acquisitions, CONTI has launched its first fund. CONTI Fund I will likely be leveraged up to $30 million. Hsu tells GlobeSt.com the company expects to deploy the majority of the capital within the first six to nine months of 2010.

"Technically this is our first fund, but we've raised $10 million before, it just wasn't as formalized," Hsu explains. "Now we have a track record we can point to of acquisitions." He says CONTI has a number of offers out on assets, but nothing under contract at this time.