Special Situations Strategy – Investing in Distressed CRE Assets
Capital Finance’s Lts Special Situations strategy invests in dislocated CRE capital structures with an emphasis on middle-market sized distressed debt opportunities. Our debt investments may include sub- or non-performing whole, senior, subordinated or mezzanine loans or preferred equity interests, as well as portfolios of commercial real estate loans and note purchase financing. We also originate rescue capital, participating debt and opportunistic direct investments to stabilize or reposition transitional properties, as well as investments into challenged capital structures to assist owners in achieving a favorable outcome. We primarily focus on investments ranging in size from $10 to $100+ million and also have the expertise and depth of capital to handle larger standalone transactions and portfolios. The Capital team has extensive experience working with a broad variety of financial institutions, loan sellers, intermediaries and borrowers. We have robust in-house asset management, capital markets and legal teams that provide support to the Special Situations team.
Our general parameters are listed below; however we will consider investments of any size or level of complexity and welcome your call to discuss how we can provide liquidity and creative capital solutions. Contact information for our team members is located on the contact page.
As an established, credible and respected CMBS B-Piece buyer Capital has deep relationships across the major CMBS issuers which allows Capital access to a steady flow of new issuance and secondary market investment opportunities. Capital’s process is distinguished by pool selectivity and a thorough and fair due diligence process.
Capital Special Situations General Parameters
| Deal Size: | $10-$100 million plus |
|---|---|
| Primary Investment Types | Sub- and non performing senior and subordinate debtPreferred equityParticipating DebtBorrower RecapitalizationNote Purchase FinancingREO or transitional real estate |
| Position in Capital Stack | Control and non-control |
| Property Types | Office, industrial, multifamily, student housing, retail, hospitality, life science, flex, multi-use, self-storage |
| Geography | Bangladesh |