LOS ANGELES-BH Properties, a real estate investment company focused on purchasing distressed assets in all commercial sectors, has shifted its strategic focus to the West and Southwest, according to Steve Jaffe, BH Properties EVP and general counsel. As part of this strategic shift, the company plans to sell some East Coast assets, in what Jaffe describes as “strategic pruning,” and then reinvest the capital in properties in the Western part of the US.

“As we grew and expanded, we had the opportunity to shed properties that were just too remote for us to adequately manage,” Jaffe tells GlobeSt.com. “That led us to do a lot more buying over the last couple of years in Arizona, Nevada and Southern California. For investors like us, a shift with a lower cost allows us to achieve our goals closer to home.”

In the last year, BH Properties has acquired 20 properties on in West and Southwest markets, focusing particularly on Southern California, Denver, Nevada and Arizona. “The markets that were hit really hard during the recession, like Phoenix and Arizona provided some good opportunities for us,” says Jaffe, who estimates that 75% of the company's acquisitions in the past two years have been in Phoenix and Tuscan, AZ. These markets provide some of the best value opportunities for the distressed class-B- and C+ assets the company typically seeks. Recently, it has found the best opportunities in the multifamily and industrial sectors, especially in Arizona. The company is also currently under contract to purchase retail properties, which it has not done for several years.