About
The Picerne Group at a Glance
The Picerne Group is a privately owned real estate investment company. The equity for our investments is predominantly funded by our founder. This fact drives a culture of ownership characterized by risk mitigation, thoughtful execution, and accountability. When you invest your own money, it’s just different.
Investment Philosophy
Our investment philosophy is quality over quantity, characterized by meaningful relationships with a proprietary group of capital providers, communities, and consultants. We believe this business model is more sustainable, profitable, and enjoyable than a volume-driven, transactional approach. Our international experience has broadened our relationships and understanding of how the world economy affects our investment strategies. We have a strong sense of responsibility to our capital relationships and have never lost a penny of our banks or investors.
Our Commitment to Excellence
Today, through our land acquisition, land entitlement, and apartment development platforms, we are a team of multi-family industry leaders on a mission to create and manage luxury apartment communities in coastal Southern California, Denver, and Las Vegas for long-term ownership. We are committed to providing the highest quality living experiences for our residents at the best value and being responsible citizens in the cities we invest in.
Picerne Group, By the Numbers
Total
Investment Value
Distressed Debt
Investment
Value-Add Apartment Acquisition & Development
Land Under Development
Investment Platforms
Distressed Debt
Apartment Acquisition
Land Acquisition & Entitlement
Apartment Development
French Hotel
The Picerne Group acquired a 284-room ski hotel in the French Alps and, after researching the obligor on the property's mortgage, arranged a favorable debt/equity swap, renegotiated the master lease with improved terms and conditions, and subsequently sold the property to a local French investor.
Arco Plaza
Arco Plaza is a 2.6-million-square-foot Class A office building in Downtown Los Angeles also known as the City National Bank Plaza. The Picerne Group was asked to acquire a loan that had been made by Japanese banks to a Japanese real estate company—the loan was secured by Arco Plaza. Negotiations between the banks and borrower were resolved by The Picerne Group’s purchase of the secured loan plus additional corporate debt, coupled with The Picerne Group’s agreement to purchase the project itself.
Loreto & Palacio Apartments
Acquired during the Great Recession through a defaulted construction loan, Loreto & Palacio in Las Vegas was 90% complete with no occupancy at the time of purchase. The Picerne Group negotiated to take title of the 739-unit property with the national merchant apartment builder and its pension fund equity partner. The Picerne Group completed construction and successfully managed the property to achieve stabilization as the Las Vegas market recovered.
Ten01
The Picerne Group purchased a senior and mezzanine loan from a large insurance company on Ten01, a 523-unit apartment property located on the Tempe Town Lake in Tempe, Arizona. The investment team worked through a borrower bankruptcy, obtained title to the property and operated the asset as the economy improved. The asset was then sold to a large insurance company for a significant profit.
777
During the recession in the early 1990s, the Picerne Group purchased 777, a 472-unit value-add apartment development in downtown Pomona from the Resolution Trust Corporation. Acquiring this property required restructuring the low floater tax exempt bond financing, which the Picerne Group assumed as part of the transaction. The Picerne Group also worked with the adjacent medical college in revitalizing the downtown Pomona area.
One Uptown Newport
The Picerne Group partnered with the landowner of a rare apartment project at a coveted Newport address across the street from Google's Orange County headquarters. The Picerne Group used a creative structure to recapitalize the project at a low basis and, as development continues, will apply its tax credit and bond financing expertise to finance the project with 20% affordable units.
Mission Valley
In the mid 1990s, the Picerne Group master-planned a former gravel pit site in San Diego’s Mission Valley. The entitlements created significant value to the land, the improving economy and further fueled San Diego’s push to create mass transit, including a electric rail line from downtown San Diego to Mission Valley. The masterplan site was sold for a significant profit in the late 1990s.
Blu Laguna Niguel
To create Blu—two luxury apartment communities totaling 426 residences —the Picerne Group purchased contiguous sites in the Laguna Niguel Gateway Plan without an entitlement contingency. Prior to building, the Picerne Group invested extensively in civil and soil engineering to capitalize views from the hillside location. The Picerne Group also cultivated relationships with the City of Laguna Niguel and neighboring landowners to create a community that addressed the needs and desires of all parties.
Aria
The Picerne Group acquired a vacant retail center and partnered closely with the City of Cerritos to create Aria, a 198-residence boutique luxury apartment community designed to align with the goals of the City. Aria represents the first successfully entitled luxury apartment community in Cerritos. Located in a supply constrained location adjacent to 500,000+ square feet of retail and one million square feet of office space, Aria is in an area with limited apartment development and robust median home prices.
Kaia
Kaia is a first-of-its-kind collection of luxury apartments in Lomita, California. Inspired by the region's most iconic architecture and marked by amenities that inspire new heights in work and wellness, this 5-story, 220-residence community offers a life beyond the ordinary.
The View
The View at Horizon Ridge is a high-end, 221-residence gated apartment community featuring a clubhouse, exercise facility and business center. Its highly desirable location is minutes from premiere golf courses, year-round recreation, fine dining and shopping and 20 minutes from the Las Vegas Strip and McCarran International Airport with convenient access to I-95 and I-215.
One Uptown Newport
One Uptown Newport is a collaboration between the Picerne Group and Shopoff Realty Investments. This 458-unit, 25-acre mixed-use multifamily community is a five-minute drive from John Wayne Airport and a 20-minute drive to some of Southern California’s most beautiful beaches.
Eleven 10
The Picerne Group partnered with Rockwood Capital and The Muller company to create Eleven10 Apartment Homes, a 260-unit, 2.76-acre multifamily community filled with exceptional amenities in the heart of Orange. Eleven10 is conveniently located one block from Westfield MainPlace Mall, St. Joseph Hospital Orange and Children’s Hospital of Orange County and near the 22, 57 and 5 freeways.
Venue on 16th
The Picerne Group acquired a land parcel adjacent to City Park in Denver, developing a boutique community of 180 residences with a number of onsite amenities. To ensure Venue on 16th’s success, the Picerne Group partnered with local homeowner groups to identify their needs and concerns, and created a mutually beneficial community that also actively addressed the interests of the area’s growing population of young professionals.
Vistara
The Picerne Group developed Vistara, a 298-unit apartment community in Ontario, California, designed to meet the needs of the area’s growing population. With modern amenities and a focus on community integration, Vistara reflects The Picerne Group’s commitment to thoughtful development and long-term neighborhood value.
History
The Picerne Group was founded in 1988 by Ken Picerne, who previously worked for his family at Picerne Real Estate Group. Over the next 30+ years, Ken would strategically evolve investment models for the Picerne Group, remaining flexible and deliberate amid changing market dynamics.
Gaining Financial Independence
The Picerne Group pursues various real estate platforms in order to become financially independent.
Ken and his brothers lead a major expansion of their family company into the Sunbelt states and are responsible for developing over 12,000 multi-family units.
Ken Picerne leaves Picerne Real Estate Group to establish The Picerne Group in Southern California. Correctly anticipating that the 1980's economic expansion is getting long in the tooth, Ken develops 2,000 apartments in a joint venture with landowners to mitigate risk through a below-market investment basis. When the economy falters in the early 1990s, Ken's projects remain healthy, allowing him to pursue opportunities created by the worst real estate recession in the history of Southern California while his competitors flounder.
Transitioning to Distressed Apartment Acquisitions Ken moves the company out of hard asset development into distressed apartment acquisitions and the acquisition of distressed debt collateralized by apartments. The Picerne Group is one of the first buyers of assets to be liquidated by the U.S. government during the Savings and Loan crisis. The Picerne Group accumulates over 5,000 units of distressed apartments through direct acquisition and the acquisition of distressed debt collateralized by distressed apartments.
Strategic Acquisitions and Entry into Distressed Debt The Picerne Group focuses on acquisitions in the hard-hit Southern California market, accumulating over 5,000 multifamily units and raw land parcels re-entitled for multifamily development. In addition, the Picerne Group enters the distressed debt industry.
Pivoting Strategies for Growth The Picerne Group pauses on investing when the U.S. apartment market corrects and liquidates nearly all the assets it had acquired during its investment cycle. The Picerne Group is then approached by a Japanese bank, with which they had developed a close relationship through its US investment activities. The bank is asked by the Japanese government to develop a program that would dispose of non-performing loans, and requests that the Picerne Group participate.
Capitalizing on Distressed Debt By 1998, apartment values in Southern California had corrected to pre-recession levels. At this time, The Picerne Group is approached by the largest bank in Japan to assist in the liquidation of their non-performing real estate loan portfolio. The Picerne Group becomes one of the largest buyers of Japanese non-performing loan portfolios, ultimately purchasing several billion dollars of distressed debt. The vast majority of these assets were liquidated between 1999 and 2006 for an exceptional profit.
Investing Wealth
In 2008, the Picerne Group returns its focus to the U.S. and begins facilitating a new investment plan and strategy.
Strategic Investment in Class A Apartments The Picerne Group adjusts its investment strategies and turns back to the US, where they begin to purchase notes secured by Class A apartments, thereby re-entering the market.
Leading in Distressed Debt Investment The Picerne Group invests several hundred million dollars in real estate secured distressed debt purchased directly from major financial institutions, becoming the largest single asset Class A apartment note buyer in the western U.S.
Leveraging Competitive Advantage for Growth Opportunities to access existing Class A apartments at attractive price margins through distressed debt purchases become rare in the middle of 2011 due to a recovering market. At this time, The Picerne Group identifies a niche opportunity in the entitlement and investment of apartment land located in the most affluent supply-constrained markets of Southern California. As the company proceeds to build out the entitled land, the opportunity to brand a new kind of product for a new kind of apartment renter emerges.
Elevated Living in Coastal California Picerne Residential, a subsidiary of The Picerne Group, is building a brand where design and lifestyle converge. We continuously refine unit plans and amenities to enhance functionality and elevate the resident experience. Focused on premium apartments in Coastal Southern California, we create modern, connected apartments that reflect luxury. New developments are underway, expanding our vision for elevated living.
A Commitment to Philanthropy
Now and into the future, the Picerne Group remains dedicated to investing wealth with a largely philanthropic mindset.
Commitment
Working hand in hand with all community stakeholders, the Picerne Group is dedicated to making a positive, lasting impact on the fabric of its communities.
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Team
“We foster a culture where ingenuity is rewarded.”
FOUNDER, CEO & CHAIRMAN OF THE BOARD
- Ken Picerne
Meet our teamGiving Back
The Picerne Family Foundation develops and supports innovative programs that provide opportunities for education, artistic expression and engagement in sustainability-focused efforts—all of which empower and inspire individuals to make positive contributions to their communities and beyond.
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