Higher-Yielding Investment Opportunities Abound in the Post-COVID CRE Market.
The post-COVID commercial real estate finance market is expected to continue to create more distressed asset financing transactions than can possibly be picked up by any one or group of funding entities. The key is to identify the assets where the circumstances are the driver and not execution risk management issues (i.e.: poor management decision-making).
Distressed Asset Financing Focused on Circumstances Not Driven by Poor Management Choices…
In cases where execution risk issues are not reasonably expected to be the case, the profit opportunity model focuses on near-term equity gains being realized from a turnaround financing approach combined with a built-in exit vehicle in the form of a recapitalization of the property and operations upon a return to profitability.
Returns on Distressed Asset Financings Track With Risks…
The resulting investment construct suggests a distressed asset investment opportunity having an expected IRR in the high teens to low twenties (i.e.: IRR of 16% to 25% per annum) being structured as the priority payout within an overall payout structure weighted 95% to the capital investors until the targeted IRR is satisfied. We believe this eliminates the specter of conflicts-of-interest arising from management receiving significant profits at the potential expense of the capital investors. To find out more, please use the form below to contact us with your expression of interest.
The information presented herein is made in reliance upon the exemption provided under Rule 241 of the Securities Act of 1933, as amended. No offer to buy, sell, aggregate, wholesale or underwrite securities of any kind is hereby made or implied, and no money shall be accepted. This communication is for the purposes of gauging market interest only and is not a binding offer of any kind.