Distressed Asset Acquisition

Atlas Equity Group facilitates the acquisition of distressed commercial real estate and debt from institutional and non-institutional capital sources.

TARGET BORROWERS:  Atlas Equity Group will provide the capital to the developer or asset management group that has identified a favorable acquisition opportunity and needs debt and/or equity to complete the purchase.  This will enable the developer or manager who has an opportunity to purchase a distressed at a great value to close very quickly.

FUNDING: Atlas Equity Group has created strategic alliances with Investors that have ready funds available in excess of $200,000,000 for this purpose.   This diverse group of capital partners will enable Atlas Equity Group to fund a wide variety of different asset and property types.

TRANSACTION TYPES:  Atlas Equity Group will focus on enabling the following kinds of transactions:

the purchase of distressed commercial real estate from lenders.
the acquisition of loans at discount from lenders.
the funding of short pays.
providing both debt and equity for outstanding turn-around opportunities.
 

PROPERTY TYPES/ISSUES

Commercial, multi-family and residential development properties will be considered.
No one-off single family homes will be considered.
Condo's will be considered where the acquisition makes sense as a repositioning opportunity as rentals or in very robust markets.
Partially completed construction projects will be considered where institutional lenders have ceased to fund.
 

CRITERIA FOR DEBT TRANSACTIONS

The transaction is an outstanding opportunity to acquire either debt or a hard asset at a deep discount.
The Borrower is experienced in developing and operating the asset type.
The Borrower has a business plan that contemplates a pay-off to the Investor typically in less than 36 months.
Transactions that solely rely on the passage of time for value creation will not be considered.
The Borrower will put in a minimum of 20% to 30% of the cost of the transaction including redevelopment costs.
The Borrower has excellent credit and is willing to personally guarantee the loan.
Estimated costs for these funds are 4 to 6 points and 12% to 16% interest.  Interest may be pre-funded for the term of the loan.
 

ADDITIONAL CRITERIA FOR EQUITY TRANSACTIONS

The Borrower will put in a minimum of 10% of the cost of the transaction including construstion or renovation costs.
The Investor will realize an IRR of at least 22% on the equity component of the transaction.
 

WORKING WITH BROKERS

Atlas Equity Group will accept submissions from brokers upon the following terms and conditions:
Atlas Equity Group will not typically consider transactions where there are multiple brokers involved (daisy chain.)  The "submitting broker" must be working directly with the borrower and will be the sole point of contact in the transaction.
Atlas Equity Group will protect brokers up to 1 point on transactions for broker compensation.  Additional broker compensation, if any, must be paid by the borrower outside of the loan escrow.
Atlas Equity Group will protect the "submitting broker" with a mutual Non-Disclosure/Non-Compete/Compensation Agreement.  This Agreement will be executed prior to acceptance of the loan for detailed review.