Recapitalizing Real Estate Platforms

Values have fallen precipitously in the current global commercial real estate market down-cycle but contrary to the paradigm of past cycles, lenders’ willingness to ignore covenant breaches and extend loan maturities has meant that property owners have not been forced to sell into the bottom of the market. These owners typically require capital to maintain, carry, and improve their properties, to pay-off, pay-down or buy back their existing debt at discounts, or to acquire additional assets at attractive pricing.  Although there is an overabundance of capital in the market formed to purchase assets at market-bottom prices, or to finance assets with a loan-to-own in mind, Carolina Ridge Holdings (CRH) believes  that strong managers should continue to own, control, manage and build value in their assets.

Consistent with this philosophy, Carolina Ridge Holdings focuses on recapitalizing real estate funds, real estate operating companies, institutionally-managed property portfolios, joint ventures, investors’ balance sheets and other types of real estate platforms. The firm’s investment scope includes all real estate property types, and is oriented toward providing capital to the following situations:

Recapitalizing Real Estate Platforms – CRH provides funding to help capital-constrained real estate platforms solve problems or take advantage of opportunities in their existing portfolios. In the current market, these situations may include:

• Paying off maturing debt
• Paying down debt to facilitate term extensions
• Financing discounted loan pay-offs
• Funding tenant improvement costs
• Funding carrying costs of low cash flowing assets
• Completing development or redevelopment projects
• Executing new value-added acquisitions and redevelopment initiatives
• Making attractive opportunistic acquisitions to capitalize on market distress

Providing Liquidity To Investors and Sponsors

Carolina Ridge Holdings also provides capital to passive investors, sponsors, and joint venture partners seeking to:

• Finance their unfunded commitment obligations
• Transfer their unfunded commitment obligations
• Buy-out capital partners, operating partners, or co-investment partners
• Capitalize and grow their operating companies
• Reduce or reallocate their investment exposures

  • Our Partners

    Dobens Law Commercial Investing Firm