Sequoia Equity Partners is a private equity firm focused on the commercial real estate industry. We provide capital markets advisory and asset management services, as well as acquire assets and notes across the country for our own portfolio.
Many of the political pundits out of Washington D.C. would like us to believe all is well in the economy, but as evidenced by what is happening across the country with real estate assets it is more apparent there is a lot that is not right within our industry. With more and more credit challenges being faced by commercial real estate borrowers today, we find many of them fighting to keep their property and equity from being taken away by a lender or special servicer. The moniker “distress” has taken on a new definition from its latter meaning of 2008-2012. While distressed real estate opportunities have waned as the overall fundamentals have improved across most markets, there is a need for private capital to fill in the equity gaps to borrowers on assets that are still considered over-levered, or in need of a recapitalization.
Consider this. Over $1.2 trillion of commercial real estate debt will mature over the next few years. Of that, more than 25% of this will be CMBS loans that were originated in the 2005-2007 era where the market for commercial real estate capital was white hot. While many borrowers at that time benefited from the run on commercial real estate, many saw values of their assets plummet post-2008 and beyond. We believe most of these very CMBS loans will face challenges securing new loans as they reach their respective maturities. As a result, many of these loans will be foreclosed upon simply because the borrower was unaware of his/her options. We often work with the servicers and attorneys to create a viable strategy that results in a capital restructuring that is acceptable to all parties.
We provide expert level consulting to our clients as they pursue a financial solution to a distressed asset and/or loan. Through our in depth knowledge of this very technical space we are prepared to provide clients with options they can act upon immediately and avoid the pitfalls of litigious and, at times, very costly mistakes when restructuring and/or recapitalizing an asset.
Providing expert-level consulting is only part of our focus. We, too, see the opportunity to participate in the acquisition of assets and notes in key markets. The deals we pursue are often off-market and proprietary in nature. We believe this coupled with our ability to bring any type of capital to a deal gives us a distinct advantage when acquiring assets.
The leadership team brings over 100 years of commercial real estate experience to each client engagement. The value each client receives from our knowledge based experts, as well as the esteemed contacts and industry resources often leads to solutions for our clients that could not have been achieved on their own. Our aggregate experience of providing distressed debt advisory and helping borrowers restructure their debt spans several billion with another $4+ billion expected this year alone.
If you are experiencing trouble with a refinance or facing challenges with you lender/servicer, then call us today for a consultation. We are looking forward to serving you.