TriGate seeks to identify and invest in opportunities that require capital to solve capital structure issues or to further an asset or company business plan. The opportunities often occur because:
- Undisciplined commercial real estate lending has led to pressure on lenders or borrowers
- Assets that have been foreclosed often benefit from new capital and management
- New capital and/or management can create additional asset value when prior owners have exhausted their own business plans (e.g. funds at the end of their life cycle).
TriGate is focused on sourcing attractive risk-adjusted investments in the following key areas:
Real Estate Assets
- Acquire real estate assets at attractive prices from motivated sellers
- Focus on value benchmarks such as prior market peak pricing parameters, replacement cost, current cash yields and the ability to withstand market declines
- Provide capital to further a business plan that aims to achieve attractive stabilized cash flow yields
- Acquire assets that offer long-term appreciation with a stable investment capital structure
- Target owners of commercial real estate assets or companies seeking to recapitalize due to excessive leverage, the need to fund capital programs, or the desire to execute a capital partner lay-out
- Provide capital to owners/borrowers to facilitate refinancings, debt modifications or write-downs, partner buyouts and fund property capital needs
- Invest in operating companies, provide sponsor capital and/or establish programmatic partnerships with best-in-class operators
- Target value-add sectors in attractive markets
- Focus on augmenting an operator’s business plan with capital and expertise
Non-Performing and Sub-Performing Loans
- Acquire discounted, sub-performing and/or non-performing commercial mortgage loans
- Purchase loans outright or venture with sellers in structured transactions thereby allowing the seller to share in the upside
- Draw on the principals’ experience and expertise in distressed debt and work-outs
TriGate invests in all of the major commercial real estate asset classes including office, retail, industrial, hotel and multi-family. TriGate has the flexibility to invest in a variety of structures including: i) project level capital; ii) entity level capital; and iii) mezzanine debt and preferred equity.
TriGate targets investments requiring $5 to $30 million of equity capital, and has the capacity to complete larger transactions.