Real Estate Distressed Debt Investments

 

What We Do

Acquisitions of Real Estate Backed Distressed Debt

At Significant Discounts to Market Values

For Debt Restructuring or Asset Foreclosure

By an  Experienced Management Team

Focused to Capital Protection & 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.

Advantages

 

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

The Opportunity

 

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

Investment Characteristics

 
  • Capital Preservation through acquisitions at costs below replacement values
  • Average time frame from acquisition of asset to divestiture: 12-24 months
  • Investments backed by tangible real estate assets, and only on first lien position
  • Assets that offer direct access to underlying Real Estate collateral
  • All collaterals are insured against natural disasters, liabilities, and fraud
  • Maximun leverage at 75% LTC

Investment Characteristics

 
  • Capital Preservation is the primary objective
  • Average time frame from acquisition of asset to divestiture: 12-24 months
  • Investments backed by tangible real estate assets
  • Assets that offer direct access to underlying Real Estate collateral
  • All collaterals are insured against natural disasters, liabilities, and fraud
  • First lien position, unless Leveraged (Capped at 75% LTC)

The Instrument

 

3 & 5 Year Term Notes & Closed – End Fund

With a Global Structure

 

The Market

A National Recession is Coming... What Will Trigger it and When?

United States

  • 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

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. 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.

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.

Contact

1 + 4 =

3006 Aviation Avenue, Suite 2A
Miami FL, 33133

Telephone: 1.800.460-9726

Email: info@elementfingroup.com