SOURCE: Floyd Associates, Inc

Floyd Associates, Inc

June 21, 2011 09:01 ET

Floyd Associates Expands Investments in Distressed Real Estate

Southern California's Distressed Real Estate Market Provided Exceptional Investment Opportunities

LOS ANGELES, CA--(Marketwire - Jun 21, 2011) - Floyd Associates (the "Company"), a privately held consulting firm with operations in strategic development, investment banking, and real estate investments, has announced expansion of investment activities in Southern California's distressed real estate market. The Company has fully invested two funds in the Downtown Los Angeles real estate market and is in the process of raising the third fund.

The rapid economic downturn of the past few years has significantly depressed the value of real estate in Southern California and across the country. Recovery in the commercial and retail sectors depends on many factors including the overall health of the economy and lower national and regional unemployment rates. Therefore, the Company believes that commercial and retail sectors have a very uncertain trajectory during the next 10 years. Residential real estate, on the other hand, is fundamentally more solid and the Company expects a healthy growth rate in the sector during the next decade.

Regardless of various macro factors, dense metropolitan areas benefit from large and sustained demand for residential real estate. In times of distress, such as the period we are going through now, a few factors contribute to a dramatic fall of real estate prices. Some of such factors are:

  • Large supply of bank-owned and distressed homes;
  • Reduced purchasing power of residents due to high unemployment; and
  • Very tight lending standards, making it close to impossible to get financing even for the most affordable properties.

In times like this cash is king. Investors who have access to hard cash can pick up these properties at historically low prices. Because of the low acquisition costs these properties produce very healthy incomes, enabling investors to benefit from solid returns during the investment period.

"We have already fully invested two funds in real estate and are currently looking to raise the third fund. We believe that markets such as Downtown Los Angeles will see significant improvements in price within the next decade and we are poised to take advantage of today's low prices," said Mr. Nima Montazeri, Floyd Associates' Managing Director. "With a population of around 13 million, Los Angeles is the second largest metropolitan area in the United States. We are very confident that the capital risk associated with purchasing real assets in such a market in current market conditions is very low. We believe that our investors will realize healthy capital gains upon exiting our real estate investments, while they will benefit from solid rental income throughout the investment period," he added.

Floyd Associates is currently in talks with various US and Middle Eastern investors about its third investment fund with the objective of acquiring more properties in Southern California.

To read more about Floyd Associates please visit www.floyd-associates.com or contact us by email at info@floyd-associates.com or by phone at: +1 (310) 300-0890.

NOTICE: THIS IS NOT AN OFFER TO BUY OR SELL SECURITIES. THIS IS NOT A SOLICITATION FOR INVESTMENTS.

About Floyd Associates

Floyd Associates is a privately held consulting firm with expertise in strategic development, investment banking, and mergers and acquisitions. Our expert team advises companies of various sizes on international expansion strategies, optimal capital structures, and formation of strategic alliances. Floyd Associates Dubai is responsible for offering strategic development advice to companies interested in exploring opportunities in the rapidly growing markets of the Middle East. In addition to helping companies gain access to markets and sources of capital in the Middle East, the Company advises clients on how to obtain a listing on NASDAQ Dubai as well as matters related to compliance with the Shariah Law. Floyd Associates' real estate investment arm seeks and invests in promising properties in Southern California.

Forward-Looking Statements

Except for historical information contained herein, the statements in this news release are forward-looking statements that involve known and unknown risks and uncertainties, which may cause the Company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.

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