Invest in Distress

The time is ripe for value-add and distress deals, according to New Boston Fund investment chief Jim Kelleher. (He's a knight in shining armor for properties in distress.) His firm has invested $100M in such plays in the past 12 months using a $212M private equity fund, and he plans to raise a new fund next year.
Jim says that now he's finding more distress deals than at any time in the past two years in his markets, the Northeast, Mid-Atlantic, and Southeast. For distress investments, he uses 100% equity. After lease-up, he takes the asset to the market for debt. He finances value-add deals with debt from regional and national banks. In Boston, deal flow is light because the economy is stronger and the many institutional owners are weathering the downturn. Hear more from Jim at Bisnow?s Boston Real Estate Summit, Sept. 27.
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