The distressed multifamily and commercial real estate markets and the severe credit dislocation in the capital markets have converged to create a unique and unprecedented investment opportunity for Tate Capital.
It is projected that over $700 billion of commercial real estate debt will be maturing in 2010 – 2012. With limited capital to refinance, the default rate is expected to increase dramatically leading to an unprecedented level of real estate non performing loans. Many analysts believe that the real estate crisis will get worse as commercial and residential mortgage loan financing alternatives continue to diminish, financial institutions continue to fail and the credit markets continue their downward spiral.
In fact, many experts believe that the total magnitude of the current financial crisis will result in excess of between $3-4 trillion in distressed debt and real estate. As a result of the current economic conditions in the U.S., coupled with the Tate Capital’s long term and well respected institutional and governmental agency relationships, the Company anticipates that it will be able to make opportunist investments in nonperforming loans and real estate over the next 3 to 5 years that will yield above market double digit returns to investors.