Publications
Publications
  • October 2024
  • Case
  • HBS Case Collection

Southern California Industrial: Freezer Drive

By: Arthur I Segel, Dwight Angelini and Matt Kelly
  • Format:Print
  • | Language:English
  • | Pages:15
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Abstract

In the midst of the COVID-19 pandemic, a Boston based real estate private equity firm was seeking to make their very first West Coast investments in hopes of establishing their presence in the strategic region. An exciting property suddenly became available on the market in a submarket of Orange County that was well positioned for future rental rate growth. The property also showed potential for quick wins including an improvement plan for enhanced visual appeal and functionality. However, the property came with significant risks to the overall budget and investment returns, and was dependent on securing and retaining a suitable tenant. How should the firm weigh these potential risks amidst the uncertainty of the pandemic, and did the benefits of securing an attractive West Coast property outweigh the potential losses?

Keywords

Real Estate Development; Acquisition; Health Pandemics; Risk and Uncertainty; Expansion; Cost vs Benefits; Investment Return; Real Estate Industry

Citation

Segel, Arthur I., Dwight Angelini, and Matt Kelly. "Southern California Industrial: Freezer Drive." Harvard Business School Case 225-015, October 2024.

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