On April 19, 2016 Trez Capital Group LP (“Trez”) announced a further expansion of our lending platform into the United States via a new partnership with Forman Capital LLC (“Forman”), and the launch of Trez Forman Capital Group LP.
Forman’s proficiency in the commercial real estate bridge, mezzanine, and equity financing markets in the United States is a great complement to Trez’s strong Canadian real estate lending platform. Trez Forman Capital Group will operate three investment strategies:
Opportunistic Bridge, Senior Stretch First Mortgages and Special Situations
Trez Forman originates first mortgage bridge loans secured by commercial real estate. These investments typically have characteristics that create hurdles to traditional lenders, such as quick closing requirements, special situations, foreclosure and/or bankruptcy, discounted loan payoffs and debtor in possession (DIP). Using disciplined underwriting with an emphasis on downside protection, we are able to quickly quantify risk. By providing unique and customized loan structures, we help borrowers create value in these special situations.
Subordinate Debt Originations/ 2nd mortgages
Trez Forman originates mezzanine loans, second mortgages, preferred equity and B-notes. Our borrowers are experienced, local and regional, middle market developers and operators with successful track records. These transactions typically have a value add component and one to three year investment periods, with fully capitalized business plans. The subject real estate is typically well located in primary and secondary markets. By investing with qualified sponsorship and well located real estate, we provide an efficient cost of capital and enable our borrowers to achieve their investment objectives.
Non-performing Note Acquisitions
Trez Forman acquires performing and non-performing whole loans, B-notes and mezzanine loans secured by all asset classes of commercial real estate. These notes are either fixed or floating rate, have remaining terms of one to ten years, and are typically purchased at a discount. While maintaining disciplined underwriting standards, we will invest our capital at an attractive basis relative to the present value of the underlying collateral.