According to a Reuters report that cites ‘several people familiar with the matter,’ the $31 billion Och-Ziff Capital Management Group LLC is in discussions to sell its portfolio of approximately 300 foreclosed homes in northern California. The properties were acquired at distressed prices at the start of the housing market's problems.
The portfolio's value is not publicly known. However, Reuters estimates that the business model used by the New York-based hedge fund and its investment partner, 643 Capital Management, places the average home price of about $100,000 apiece, while renovations on the properties would requires tens of thousands of dollars.
Neither Och-Ziff nor 643 Capital Management commented on the Reuters report.