Distressed entry point. Operational edge.
We’re not strictly credit or equity. We are the bridge. With the guidance of the right sector specialist, we acquire distressed credit positions and exit into a normalized market.
This is not an offer to sell, or a solicitation of an offer to buy. Any such offer, if made, would be made only pursuant to definitive offering documentation. We do not invest in deals where we’ve been retained to work out loans.
The visible market is not the opportunity.
The gap between the visible and hidden distress is where the opportunity lies, not in the auction results everyone already sees. This gives us an edge: when it makes sense, we put skin in the game.
The visible, cleared, on-market portion. Auction results everyone already sees.
The full balance-sheet-plus-CMBS book that has not cleared yet. That gap is where the opportunity lives.
Through our family office, Superior Realty founded in the early 1990’s, our principals own and operate over 60 properties across residential, retail, office, and industrial. That operating history, as well as the debt-side analysis, informs our investments.
Most of what we see comes either through relationships built in the advisory business, or because of our market surveillance. While look at marketed deals as well, we focus on opportunities where we compete on structure, not just speed and price.
- Structurers, not brokers
We don’t shop paper or deals to the highest bidder on commission. We structure and originate the position to hold it, and partner with top tier operators to improve it.
- Position-agnostic
We are not wedded to one instrument. Note, mezz, preferred, or Equity. Structured to solve for the right basis and NOI growth.
- Solving for the in-place capital stack
There are many ways to solve for basis. It can be cheap leverage, seniority of equity or discount to par. We solve for realistic growth in distributable income and security thereof.
- Connective intelligence
We sit across borrower, lender, and investor positions, so we see what’s invisible to a desk in one seat. Our deals often start not as an opportunity, for which we put our skills to work.
Structurer, Investor and Operator. Deep-dive, not churn.
We operate real estate, so we get the property side of the deal. We run a workout shop, so we solve for loan document pitfalls to structure around.
We go deep on fewer projects and know up front, which have a chance of successful acquisition, and those where a lender or owner is (frankly) not going to transact.
Distressed Credit Funds
Broker lists and auction flow.
Hands off the asset.
Sell the note or foreclose
Fee and carry on volume.
Operators
Local operating relationships.
Strong on property, thin on capital.
Hold and operate.
Asset-level returns.
Workout Advisors
Referral, but no balance sheet.
Advise only. Won't take a position.
Resolution for the client, then done.
Advisory fee.
CASE
The advisory flywheel. Ears to the ground.
Operator and investor. Structure and hold.
Convert credit to equity, sell, hold, or improve and sell.
Basis manufactured through structure.
Deals reach us for our advice, not just brokered flow.
Our reputation brings opportunities.
Counterparty carryover
A lender or servicer we worked opposite in a prior workout came back to us to assist with a difficult borrower with a recapitalization opportunity.
Peer referral
Other advisors without a real estate investment arm refer deals they cannot or will not take onto their own balance sheet.
Second-look assignments
When the “too good to be true” deal falls apart, time pressure brings the opportunity back to us.
Structured co-investment
Family offices and smaller institutions seeking to salvage distressed CRE deals bring us in as the structuring partner and operating group.
Surveillance signals
Our advisory work across dozens of files gives us opportunity pattern recognition, ahead of when it shows up in reported data.