As the head of Blackacre Capital, the property investment arm of Cerberus Capital Management, Ronald Kravit has helped define the trend of hedge funds entering the world of private equity real estate. In the process, he and his team have been involved in some of the industry's most innovative deals in recent memory.
Kravit's investment savvy stems from his long track record in the sector. While working as the chief financial officer of Houston-based Maxxam Property Company, Kravit helped with the acquisition of one of the first bulk RTC portfolios. Before he left to work at George Soros' Quantum Realty Fund, Kravit had overseen the acquisition of more than $350 million in bad debt from the US government. He later joined Apollo Real Estate Advisors, before coming over to Cerberus.
At Cerberus, Kravit has led the low-profile firm into a number of high-profile deals, including the landmark acquisitions of discount retailer Mervyns and grocery store chain Albertsons. But Cerberus has also been active in the residential sector. Last year, the firm was part of the investor consortium that acquired the former El Toro marine base for $650 million, giving it a 3,700-acre parcel of developable land in Orange County, California. And reflecting Cerberus' ability to invest up and down the capital structure, the hedge fund recently extended $275 million in financing to high-rise condominium developer Boca Developers, which is building projects throughout Florida.