Group Looks to Acquire $300M in Assets

The group will be led by president Andy Sneider, who is also the head of locally based Sneider Management, an affiliated real estate firm. Sneider SSG will target assets for acquisition or joint venture in select high-growth or fast rebounding areas of Florida, the Carolinas and Texas that meet "special situation" investment criteria. Initial capitalization of the program comes from a consortium of affluent and seasoned real estate investors with ties to the South Florida market. "We grew tired of competing for core office, industrial and retail deals in the 5 ½ to 6 ½ cap rate range, so we decided to rechannel our efforts to more unique and challenging deals to deploy our turn around expertise to reap higher investment yields," Sneider says, in a prepared statement.

Investment criteria may include major repositioning, redevelopment or adaptive reuse opportunities, under performing assets located within major development or redevelopment corridors, deeply discounted assets with low to medium levels of environmental cleanup requirements and assets with high vacancy levels due to major tenant vacancy or relocation, according to the statement.

REH Capital Partners chairman Frank Nardozza tells GlobeSt.com that the group is targeting office, flex warehouse office and retail properties with high vacancy levels. Areas in Florida being targeted are South Florida, Orlando, Port Charlotte and St. Lucie County. In Texas, the group will target Houston, North Dallas and Austin.

"We're looking for areas where there has been significant job formation," Nardozza says. "Just recently we've started to see more opportunities in Texas."

Nardozza adds that the group will acquire the assets over a 28-month period with a few hundred of acquisitions by the end of the year. "We're looking to hold onto the assets," he says. "After the two and one-half year period ends, there may be a recapitalization of the assets but not necessarily a sale."