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