NVCommercial Holds First Closing of Commercial Real Estate Opportunity Fund

Nov 14, 2011, 11:15 ET from NVCommercial

TYSONS CORNER, Va., Nov. 14, 2011 /PRNewswire/ -- NVCommercial, commercial real estate investors, developers and owners, announced its first closing of the NVCommercial Real Estate Fund I, LP (the fund).  Stephen Cumbie, Peter Lunt, Russell Marks, and Matt Weber are the principals in the fund's general partner.  Between them, they have over 80 years of experience.

The initial closing totaled $24 million.

"Our fund will focus on an underserved portion of the greater Washington, DC real estate investment market: equity and debt commitments in the $2 to $10 million range," Mr. Cumbie said. "This is because the vast majority of real estate investment capital is now seeking projects with cash commitments in excess of $10 million."

The fund will primarily consider investments in retail, office, industrial, completed lots, apartments, and condominiums in the greater Washington area.

According to Mr. Lunt, the supply/demand imbalance that exists in the commercial real estate finance market has created the most attractive investment environment since the previous dislocation during the RTC era.

"The predicted wave of maturing debt on commercial real estate is here," said Mr. Cumbie. "Through our fund, we will seek opportunities to help owners and real estate sponsors with restructuring and recapitalizing of viable properties that for whatever reason are stymied in the current market and finance environment."

The principals have completed three similar transactions since September 2009.  The first was a condo project in Washington, DC, which was a $3 million investment; and the second was a condo project in Arlington for $4 million.  In each case, NVCommercial assisted the sponsor in obtaining new financing and provided the new equity in order for the project to proceed.

The third transaction in 2011 was a mezzanine loan on a completed condo in DC facilitated by a significant discounted debt payoff to the original lender and the placement of a new first trust and mezzanine loan constituting about 50 percent of value of the condominium property.

SOURCE NVCommercial