COSTA MESA, CA—GlobeSt.com has learned exclusively thatTGG Realty, an affiliate of CornerstoneRealty Group Inc., has joined with AmericanSpectrum Realty Group to acquire discountedsingle-family-trust deed notes. The initialcapitalization of the venture is $1 million, and TGG will managethe acquisition and disposition of the notes.

|

The joint-venture partners expect to expand the investment toseveral million dollars over the next 12 months. The business plancalls for the completion of the foreclosure process on the loansbefore either offering the properties for lease to the formerborrowers or listing the properties for sale.

|

According to John Itzel, president of CRG, “Wesee a slow decline in the foreclosure ofsingle-family loans over the next 24 months. However, with anestimated 4 million home loans still underwater in the US, we seetremendous opportunity to acquire defaulted notes at a significantdiscount.”

|

TGG/CRG entered into the partnership with ASRG to bolster thenational presence of CRG and to allow ASRG to take advantage ofCornerstone's management and acquisition team with more than acentury of combined experience. “The strategic alignment ofCornerstone with a company such as American Spectrum is a hugebenefit to all of our endeavors moving forward,” says CRG's CEORourke Oakland. “Their national presence andproven track record makes them a great partner for the immediateand distant future.”

|

As GlobeSt.com reported in April, CRG recently launched awebsite called 1031netex.com. At the time,Itzel told us, “This is a unique adventure we're embarking on toallow 1031 exchange people and TIC owners to list their propertieson a website, kind of like Zillow. If things workout as we plan, we'll eventually get to 50,000 to 60,000registrations. It allows these owners to trade in a secondarymarket where one didn't exist before.”

|

In addition, as GlobeSt.com reported earlier this week, USforeclosure filings decreased 5% in May from theprevious month and 26% from May 2013, according to a report from RealtyTrac.Foreclosure activity is now at the lowest monthly level nationwidesince December 2006. Still, despite the decrease in overallforeclosure activity nationwide, there are still 21 states thatposted monthly increase in overall foreclosure activity last month,and 11 states posted annual increases in foreclosure activity.States with annual increases included Massachusetts, New Jersey,New York and Indiana.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.