Operations Research, Systems Engineering and Industrial Engineering Commons^™

What Is A Strategic Acquisition? Decision Modeling In Support Of Foreclosed Housing Redevelopment, Michael P. Johnson Jr., Rachel B. Drew, Jeffrey Keisler, David Turcotte

Michael P. Johnson

This paper describes and develops a model for calculating location-based strategic values of foreclosed properties considered for acquisition and redevelopment by community development corporations (CDCs). A property’s strategic value refers to its proximity to site-specific neighborhood amenities and disamenities (e.g. schools, public transit, distressed properties), given the relative importance of that proximity to CDC organizational and community objectives. We operationalize the concept of strategic value, and apply this concept to a salient public sector decision problem. Using data and value assessments from a CDC engaged in foreclosed housing redevelopment, we compute measures of strategic value for a set of acquisition …