Real Estate Distressed Debt Investments
What We Do
Acquisitions of Real Estate Backed Distressed Debt & Assets
At Significant Discounts to Market Values
For Debt Restructuring or Asset Foreclosure
By an Experienced Management Team
Focused on Capital Preservation & Above Average Returns
What We Do
Acquisitions of distressed commercial real estate debt
at significant discounts to market values
for restructuring or foreclosure
Managed by an experienced team
focused on capital preservation and above average returns.
Unique Access to Off-Market Institutional Grade Investment Opportunities
Seasoned Team Experienced in Creating Value During Up & Down Markets
Complete Transparency Between Team & Investors
Focused on Asset Protection & Results
Unique Access to Off-Market Institutional Grade Investment Opportunities
From Financial Institutions Forced to Take a Significant Loss in Exchange for a Fast Sale in Order to Meet Capital Requirements
Due to their Unwillingness and Inability to Participate in its Own Distressed Asset’s Restructuring
Managed by an Experienced Team in Acquisitions, Restructuring, and Disposition of Real Estate Backed Distressed Assets, Value Added Development, and Asset Repositioning
3 & 5 Year Term Notes & Closed – End Fund
With a Global Structure
- Main focus on Capital Preservation through below market value acquisitions.
- Average time frame from acquisition of asset to divestiture: 12-24 months.
- Investments backed by tangible real estate assets on first lien position.
- Assets that offer direct access to underlying Real Estate collateral.
- All collaterals is insured against natural disasters, liabilities, and fraud.
- Maximun leverage (capped at 75% LTC).
A National Recession is Coming… What Will Trigger it and When?
• Unsustainable Debt Levels…. by end of 2018 the official private and public debt figure is $75 Trillion. 400% of GDP….. per the FED’s Financial Account of the US.
• Longest low Unemployment Rate since 1969 & long Economic Growth Cycle: 8 – 10 years in expansion.
• Trade War with China and other barriers continue to put downward pressure into the Economy
• Overnight REPO Market in rescue mode. NY FED’s first rescue in a decade ($53B in Aug-2019). Deficit will continue to put pressure on rates.
• Private / Shadow Lenders now represent 50% of total outstanding none Governmental debt. Hard to quantify
• Institutional investors continue chasing yield & taking higher risks for several years now.
• Low Rates being kept artificially. Rise in Interest Rates seems inevitable to control inflation and continue to recycle the U.S. debt. Banks & other lenders will raise rates as demand for liquidity increases.
• Institutional and Private Sector already showing liquidity constrains due to debt load
Total Global Private & Gov't debt at record high
2000 – 2017
Source: Institute of International Finance, The Washington Post, NKF Research; November 2018
What signs should anticipate a Recession
- Bursting of multiple bubbles – stocks, bonds, real estate, interest rates. All of these are at or near all-time highs.
- Drop in demand for office, retail and industrial space (WeWork).
- Large month over month drop in sales velocity for commercial and single family.
- Monthly spike in Unemployment Rate.
- Sequential tick up in delinquency buckets for leveraged loans.
- Illiquid debt markets leading to low bids.
Total commercial loans held by banks
Delinquency rates on commercial loans held by banks at an all time low
The rapid growth of private "Shadow" lenders
Source: Bank Of America
Private debt market has more than doubled in under a decade
Source: Bank Of America
U.S Risky debt at record levels
1998 – 2017
Source: Moody’s Credit Rating Service, NKF Research; November 2018
The Green Street Commercial Property Price Index is 100% higher than its highest values in the previous crash, in some RE sectors, representing a potential market correction in the very near future.
US GDP & The consumer
US consumer debt higher than at the previous crash
US media home and rent prices at an all time high
US annual payrol job chance
Source: U.S Bureau of Labor Statistics, National Bureau of Economic Research, NKF Research; November 2018
Consumer delinquencies at an all time low
Who We Are
Mr. Stebenne has more than 15 years of Operations Management, Acquisition, Due Diligence, and Disposition experience related to various classes of real estate, focusing on multi-family, student housing, and assisted living facilities.
He also has over 15 years of financial analysis experience, including experience in complex financial arrangements.
He has been involved in complex management and financial contracts for over 20 years. As a senior team member with Prescient, he was involved with sourcing, analyzing, and implementing public and private sector business initiatives and contract engagements in regards to relationships for the acquisition, management and disposition of various asset classes. He is a reliable executive with a proven track record of accomplishments in large scale national projects in both the public and private sectors.
Mr. Sordo has been a licensed attorney and member of the Florida Bar for over 25 years. As a founding member of Sordo & Associates, P.A., he has represented developers, lenders, investment managers, private equity funds, international developers and private owners looking to maximize their investment and advance their business goals.
His clients include both U.S. and international investors, owners and operators, independently and through joint ventures with developers and equity partners. His focus has been on structuring and implementing real estate projects for his clients. He commands a broad range of expertise includes the acquisition, financing and improvement of virtually all asset classes of real estate, including the acquisition and liquidation of distressed mortgage and business notes.
Mr. Benitez has over 25 years of experience in real estate and mortgage lending industry as a founder and owner of several development and lending institutions. Currently the principal of Columbus Financial, a Mortgage Lender with branches in many States, such as California, Texas, Georgia, North Carolina and Florida.
Consistently successful in identifying and capitalizing on market opportunities to drive revenue, profit and market share growth, Mr. Benitez combines strong financial, P&L and operating management experience with expertise in the development and negotiation of strategic alliances, joint ventures, and partnerships.
As founder of RAB Development Corporation, he developed over 45 residential projects of new construction and conversions. Projects spanned Dade, Broward, Orange and Seminole Counties and ranged in size from 40-1100 units, and generated over $1 billion in sales in 4.5 years
Mr. Lluch has successfully developed and managed real estate projects, properties and investment funds from Florida to Illinois for almost two decades, including partnerships with some of the largest U.S. real estate firms, articulating real estate investment transactions close to a billion dollars.
While working for Citigroup and Morgan Stanley, Mr. Lluch negotiated and established important institutional relationships in the U.S. and Latin America, managing relationships worth upwards of a billion dollars of investment funds.
Mr. Lluch graduated in Economics from the University of Western Ontario in Canada, and attended the Master’s program for Civil Engineering in Construction Management at Florida International University. He also has several real estate certificates of specialty studies from accredited U.S. institutions such as CCIM, and LEEDS.
Bruce Arinaga is the manager for the Arinaga Family Office. The family has significant real estate holdings in the Hawaii market mostly in the multifamily space, as well as substantial investments with Broad Reach Retail Partners (www.broadreachretail.com), an east coast based real estate investment and management company who and owned and managed over 2.5 million square feet of retail with a value in excess of $500 million. It has made additional investments in multifamily in Florida, a large development platform in Vancouver (South Street Development) and in private equity. The family office partners with large international investors and families to make strategic programmatic, scalable real estate investments. In addition, the family has made private equity investments into the healthcare, energy and other markets.
Mr. Arinaga, prior to running the Arinaga Family Office, served as principal of Woodmont Capital Partners, as well as Real Trust Management LLC where he was responsible for financing over $2 billion in residential and commercial real estate transactions, as well as the acquisition and development of $500 million of real estate in the Mid-Atlantic and Western states. Such developments included over 3,000 units of for-sale and rental residential in low, mid and high-rise ground-up condominium developments, as well as conversions. Mr. Arinaga was also a Principal in TYBA Group Inc., a large Canadian developer, where he was responsible for the development of over 1 million square feet of office and retail development, as well as over 4,000 residential units. Mr. Arinaga was also involved in the workout of over $2 billion in loans for the Japanese. Mr. Arinaga has over 27 years of real estate and finance experience with the Prudential Insurance Company of America and the National Housing Partnership and has been involved in over $8 billion of real estate development, acquisition and financing transactions.
Mr. Arce has over two decades of experience in the banking and securities market in Europe, where he had lead the growth and expansion efforts of several top industry companies and mutual funds. In his latest roll as Sales and Business Development Manager of an European Bank, he has grown the assets under management by over Euros 650 million, and has lead the tasks of strategic planning, product design and development, relationship building, recruiting, media representation, sales training, and distribution relationships with world renowned banking groups such as Merrill Lynch, ABN, and BNP Paribas.
Mr. Arce has a strong and established experience in capital rising for many different projects raging from alterna5ve energy to real estate. Mr. Arce is a member of the investment committee as well as the lead coordinator for investment capitalization.
Mr. Arce is also a member of the Board of the investment holding companies Chapman Group UK.
3006 Aviation Avenue, Suite 2A
Miami FL, 33133