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Investment Firms Launch $400M Fund to Buy Distressed Commercial Real Estate

Atlanta-based ""Regent Partners LLC"":http://www.regentpartners.com and ""TriGate Capital"":http://www.trigatecapital.com have joined forces to form a $400 million fund to invest in commercial real estate. It's just one more sign that the downturn in the sector has created a buyer's market of incredible bargains.

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According to the firms, the Regent-TriGate Property Fund I will focus on the recapitalization of real estate assets primarily in Atlanta, as well as other markets in the Southeast, that require both capital and management expertise.

As ""DSNews.com reported last week,"":http://dsnews.comarticles/tarp-overseers-have-commercial-real-estate-in-their-sights-2010-01-29 a congressional oversight panel recently headed to Atlanta to hold a field hearing on the potential reach of commercial real estate troubles. Atlanta was chosen as the destination because that market has been hit particularly hard and many experts believe Atlanta's experience could eventually stretch to other parts of the country.

A report by the local _Atlanta Business Chronicle_ the investors will acquire primarily distressed office buildings, hotels, and high-rise residential towers over the next two years.

""We believe that Regent-TriGate will offer management and capital solutions to lenders and owners of large, complicated real estate assets that are in need of recapitalization,"" said David Allman, chairman of Regent Partners. ""It is our belief that market participants will be looking to firms that have capital, but also have the ability to add value to real estate through intensive management and redevelopment.""

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According to a statement from the firms, the Regent-TriGate fund is currently looking for opportunities to combine its operating, marketing, and repositioning expertise with financial restructuring. Potential transactions might include joint ventures with financial institutions that own or are secured lenders on properties, acquisitions of loans, and equity investment in properties that require recapitalization.

The fund will look to combine its capital with third party institutional partners to further augment its capital base for specific opportunities. In particular, Regent-TriGate believes it can add value to large developments that need new sponsorship in order to maximize the value of the assets.

""We believe that Regent's redevelopment capability, management expertise, and knowledge of Southeastern real estate together with TriGate's investment and financial structuring expertise will provide unique solutions to the real estate challenges that exist today,"" said Jay Henry, managing member of TriGate Capital.

Since its inception in 1998, Regent Partners has acquired and developed more than 15 million square feet of office, residential, retail, and hotel space valued in excess of $2 billion. Regent's signature project is the 50 story Sovereign building, a vertical mixed use tower on Peachtree Road in the Buckhead district of Atlanta.

TriGate Capital, headquartered in Dallas, Texas, says it is focused on investing in real estate properties, real estate secured loans and securities, and real estate companies through transactions that emanate from the need of financial institutions and property owners to restructure. TriGate's principals have invested in more than $10 billion of real estate assets, and the company says it has raised its inaugural fund to take advantage of the current lack of capital in the commercial real estate market.

Peter Fish of ""Sterling Real Estate Capital"":http://www.sterlingrealestatecapital.com helped to arrange the new property fund. Sterling is an Atlanta-based real estate private equity advisory firm.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
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