Strategy
Osprey's success to date has been driven by its ability to add value to under-performing assets. By keeping a full spectrum of real estate services such as leasing and property management "in-house" and "under one roof", we are able to generate better data in more real time fashion than our competition. The data is intensely managed so that we continually adjust strategies to account for changes in market conditions. This "alpha management" approach has enabled Osprey to excel and prosper through both the highs and the lows of market cycles.
In mid-2006, Osprey's management believed that real estate had become significantly overvalued and effectively ceased acquiring properties. Due to the crisis that has rocked the financial markets, particularly the credit markets, and the inevitable effect on the overall US economy, the landscape for commercial real estate has changed markedly over the past 18 months.
Today's lack of available credit has reduced the universe of buyers and caused cap rates to rise. Currently the only sellers of commercial property are those who "have to sell". The need to sell is typically related to the property owners' financing such as: a maturing mortgage that cannot be refinanced at similar rates, terms and amount; pre-term investor redemptions; an owner needing to raise capital to satisfy capital calls on other holdings, and; over-levered properties resulting from unrealistic underwriting fundamentals. In addition to property owners forced to sell properties, due to the well publicized problems in the financial markets, many, if not most, commercial banks and other mortgage lenders also have to sell mortgages that they hold on their books.
In light of the market conditions leading up to the extreme dislocation we are now experiencing, OIC anticipated the opportunity and, in correlation with its established property acquisition activities, began targeting mortgage loans for sale beginning in the fourth quarter of 2007. Throughout this effort, we have developed a database to solicit opportunities, both from the mortgage loan holders directly as well as from the investment banks and brokers whom they have hired as sales intermediaries. Along with the team's expertise in loan sizing, investment analysis and credit review, OIC has existing relationships with loan servicers to provide a comprehensive investment and operation platform for institutional and individual investors alike.