Why Distressed Debt, Why Now?
A significant market shift is underway. With over $1.6 trillion in commercial real estate (CRE) debt maturing by 2026, many loans originated in a low-rate era now face a challenging refinancing environment.
A Compelling Opportunity
Rising interest rates and operating costs mean many property owners cannot meet today’s strict underwriting requirements, leading to a growing wave of distressed CRE loans.
As regulatory pressure mounts, banks and non-bank lenders are increasingly motivated to sell non-performing loans (NPLs) to clean up their balance sheets. The Commercial Opportunity Fund I is positioned to acquire these NPLs, secured by quality CRE, with significant equity in their underlying collaterals.
CRE Debt Maturities by 2026
$957B
$663B
Source: CRE Daily, CRED IQ, Northmarq
A Disciplined Process from Acquisition to Liquidation
1. Sourcing
We leverage our established relationships with bank and non-bank lenders to gain access to a consistent deal flow of non-performing CRE loans.
2. Acquisition
Our team conducts rigorous due diligence. We target an acquisition cost of ~65% of the property’s current market value to ensure strong capital protection.
3. Resolution
To accelerate outcomes, we initiate deed-in-lieu negotiations and foreclosure proceedings in parallel, focusing on lender-friendly states.
4. Liquidation
Capital is returned through one of four pathways. Proceeds are then redeployed into new assets to compound returns.
Investment at a Glance
Fund Type
506(c) for Accredited Investors
Minimum Investment
$100,000
Target IRR
23% annualized net investor returns
Fee structure
No fees ensure total alignment with LP investors
Leverage
No fund-level leverage is used
Redemptions
Quarterly after a 1-year lock-up period
Learn more about this non-correlated investment opportunity
Access the fund deck, a webminar-video, and schedule a call with our team to discuss the investment thesis and have your questions answered.