The quest to find properties in a CMBS world
There has not been an instance in any other market where capital was so desperately needed, capital was so readily available and the two couldn’t find a way to meet.
Why is that the case in CMBS?
There are plenty of problem loans and properties needing capital and there is plenty of capital willing to invest!
The problem is in finding each other! If you are an investor looking to invest in CMBS, the first place you would think to look for problem loans and properties is the Special Servicer. Yet, the Special Servicer is so risk adverse (rightly so), that they tend to broadly market every property and every loan that comes across their desk, so an investor is really just told to “go get in line with all the other investors and if you are the highest bidder, you will be able to invest”.
Many commercial real estate investors have found themselves frustrated because they have capital to deploy and have basically been told over and over that they are not allowed to participate in deploying in many aspects in CMBS, even though the capital is so desperately needed. In fact, this investor money would help keep many bondholder losses from happening in the first place. This is one of the only industries where the ‘gatekeeper” (Special Servicer) has the ability to – in essence – unilaterally keep investors from investing good money if the gatekeeper feels like it.
And often, the investor finds that even though they can identify a property within a Special Servicing shop, it doesn’t mean that you can find the actual person behind the desk to help you navigate the process. It is a lot like playing hide and go seek.
More than any other type of investment, making an investment in a CMBS property or loan takes an intimate knowledge of the rules by which a Special Servicer is governed, intimate understanding of each Special Servicer’s practices, and many other nuances that are only gained from first-hand experience. 1619 Capital Partners provides you, for the first time in the industry, direct access to that very experience and insight which will allow you to SEEK the assets you want to invest in! The game of Hide and Go Seek will be gone and you will be left with a partner who will SEEK assets for you!