- Overview
- Bridge Financing
- Mezzanine Financing
- Note Purchases
- Recapitalization of Existing Ownership
- Corporate Finance
Affiliates
Note Purchases
There are many financially distressed or motivated sellers in the commercial real estate markets that generate numerous value oriented investment opportunities. Many financial institutions, in an effort to avoid the time and expense typically associated with the foreclosure process and the issues associated with actually taking title to the underlying real estate, sell under-performing and non-performing assets, often at a discount. Additionally, investors in large portfolios often want or need to dispose of certain acquired properties at a discounted price, especially smaller assets which are more difficult to maintain and manage efficiently. Canyon typically focuses on the smaller, $10 million to $75 million transactions, a market largely ignored by the institutional investment community due to economies of scale and such institutions' need to invest large dollar amounts.
Canyon is also an active buyer of corporate securities collateralized by real estate. A downgrade of a corporation's credit rating can cause an irrational, or at least hasty, disposition of assets whose underlying security value has remained unchanged. In addition, opportunities may involve acquiring securities which have been undervalued as a result of a lack of interest on the part of the research/analyst community and the consequent poor assessment of the underlying real estate.
Note Purchases
- Size: $10 to $75 million
- Status: Non-performing or defaulted
- Yield Expectations: As low as 15%
- Seller: Bank, Special Servicer, Insurance Co.
- Upfront Fees: N.A.
- Lockout: N.A.
- Closing: As fast as 2 weeks
- Property Types: Flexible
Uses
- Asset/Liability Management
- Rating Agency Requirement
- REMIC Regulations
