CBA continuously monitors changes in real estate and capital markets conditions to identify dynamics and trends that create unique opportunities or risks, and adjusts its investment strategy accordingly. Depending on the market environment, CBA will participate in different segments of the capital structure, including debt, mezzanine, and equity. In early 1998, for example, CBA determined that competition amongst commercial mortgage lenders had become intense, as represented by the unusual tightening of credit spreads, and ceased mortgage origination.
CBA then focused on equity investment transactions in secondary markets that could benefit from intense lender competition and the turmoil in fixed income markets resulting from the Russian sovereign debt crisis. CBA sponsored the formation of Cheslock, Bakker Opportunity Fund, L.P. ("CBOF") with capital of institutional partners, including private pension funds and a foundation. CBOF has substantially completed its investment program, having created a diversified portfolio of equity investments and mortgages, most of which have already been liquidated resulting in significant returns to investors.
CBA has also sponsored the creation of new investment platforms by developing and capitalizing the growth of real estate operating companies that can take advantage of inefficiencies in the capital markets.
With over 40 professionals, CBA continues
to employ its strategy of identifying attractive principal investment
opportunities for itself and its institutional partners and clients based
on inefficiencies created by changes in hard-asset markets and financial
assets in the capital markets.