Investment Criteria

DISTRESSED DEBT

Distressed Debt Division

The SRC Distressed Debt Division will provide note holders of non-performing promissory notes that are secured by commercial real estate an efficient means to liquidate the non-performing asset. By our acquisition of the non-performing note or bank owned property, we can help facilitate loan restructuring or acquire, renovate and/or redevelop the distressed commercial property or if brought current hold until maturity. SRC is primarily focused on multifamily related debt purchases.
 

Acquisition Criteria

Property Types

  • Multifamily preferred but will look at all product types
  • Apartment communities with a minimum of 100 units.
  • Garden, townhouse, mid-rise, high rise apartment , condo communities or mixed use retail with residential
  • Primary and secondary MSA's throughout the United States
  • Markets with stable or growing population, employment, and rents
  • Class C+ to A+ assets

    • Investment Characteristics

  • Attractive LTV's on Purchase Price
  • First mortgage, Mezzanine and Second Mortgage debt
  • Preferred minimum size of $5 million on First Mortgage and $1 million for Second mortgage or Mezzanine debt
  • High barriers to entry and supply constrained markets
  • Single assets or portfolios
  • REO Bank owned properties or nonperforming commercial paper
  • Commercial paper that was not sold in to secondary market investors due to a change in market conditions

    • Investment Situations

  • Lease up and/or repositioning loans
  • Apartment or Condominium construction loans
  • Condominium Conversion loan
  • Bridge or short term capital improvement loans
  • Work-out and restructure Debt/Ownership/Tax with developer/lender