Dallas-based Bradford Cos. is preparing to capitalize on distress in the market through the launch of a $100M fund aimed at acquiring value-add properties across North Texas.
The firm plans to target industrial and office assets emerging from capital market challenges, according to a news release. This is Bradford’s second acquisition fund. The first, Bradford Opportunity Fund I, invested $50M in the purchase of Meadow Park Tower, a 263K SF multitenant office building in Dallas. An affiliated partnership is working on an $8M renovation at the property.
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“Our rescue capital program is in full bloom,” President and CEO Kevin Santaularia said in a statement. “The current high interest rate environment has lenders locked up and owners needing to trade out of assets with financing issues. Therein lies the opportunity for Bradford and our private investor partners.”
Bradford has partnered on investments valued at more than $250M and covering 5M SF, per the release. The firm also manages 15M SF of real estate in North Texas for major institutions, lenders, pension fund advisers and entrepreneurial investors.
This latest fund presents an opportunity for savvy investors to deploy capital while defaults and foreclosures are on the rise.
Trepp data shows that of the $270B of bank-backed CRE loans maturing in 2023, about $80B are tied to office properties. The overall commercial mortgage-backed securities delinquency rate increased by 80 basis points between December and February, per Trepp.
“We feel that the capitulation in the market will drive rare opportunities for local, nimble investors in this new era of asset valuation resets, which are resulting from higher interest and cap rates,” Santaularia said.
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