History

Organized in 1977, Group One Investments was founded during an era in which an industry described as "real estate syndication" was developed. The majority of the companies in the industry were led by people with an expertise in understanding the tax laws versus an understanding of the fundamental economic principals of real estate. During this era, companies were able to invest in real estate and generate $3 for every $1 invested by their investors based on the prevailing tax laws. Unfortunately, for these companies, the government changed the tax laws in 1986, which virtually destroyed the syndication industry.

Fortunately for Group One, it invested in real estate based on economic principals. As such, the company survived the change in tax laws and simply stayed out of the market until prices adjusted enough to justify an opportunity to invest. The company began acquiring properties again in 1991 during a time when property values were depressed mostly as a result of a lack of capital in the market. The company steadily grew during this period. At its height, Group One Investments owned more than 6,000 apartment units and several hundred thousand square feet of commercial property throughout the country.

Group One stopped acquiring property in 2002. Similar to how the change in the tax laws in 1986 affected real estate values, government programs created an environment that made it relatively easy to purchase homes. Easy credit standards facilitated a flood of capital into the market place, forcing prices up and yields down. Group One recognized the dynamics in the market place (Demise of Fannie Mae letter) and initiated a disposition strategy in 2004, which was completed in 2007. Group One's envious track record over this time period is supported by an 18.8% average internal rate of return.

Group One Investments reentered the market in 2010.

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