Philosophy
We seek attractive risk-adjusted returns by originating and acquiring real estate secured debt. By leveraging our unique industry expertise, and using disciplined underwriting of real estate and credit risk with an emphasis on downside protection, we generate above average risk adjusted returns and offer our borrowers more competitive and more creative capital solutions. We operate three investment strategies.
Subordinate Debt Originations
We originate mezzanine loans, second mortgages, and B-notes. Our borrowers are experienced, local and regional, middle market developers and operators with successful track records. These transactions typically have a valueadd component and one to three year investment periods, with fully capitalized business plans. The subject real estate is typically well located in primary and secondary markets. By investing with qualified sponsorship and well located real estate, we provide an efficient cost of capital and enable our borrowers to achieve their investment objectives.
Opportunistic Bridge and Special Situations
We originate first mortgage bridge loans in special situations. These investments typically have characteristics that pose unacceptable risk to traditional lenders, such as environmental impairment, bankruptcy, or abbreviated closing timelines. Using disciplined underwriting with an emphasis on downside protection, we are able to quickly quantify risk. By providing unique and customized loan structures, we help developers create value in these special situations.
Performing and Non-performing Note Acquisitions
We acquire performing and non-performing whole loans, B-notes and mezzanine loans secured by retail, office, multifamily, industrial, and entitled commercial land. These notes are either fixed or floating rate, have remaining terms of one to ten years, and are typically purchased at a discount. While maintaining disciplined underwriting standards, we will invest our capital at an attractive basis relative to the present value of the underlying collateral.