Dallas–Behringer Harvard has announced the formation of BH Capital, LLC, a Behringer Harvard-related company that will focus on the acquisition of small-balance debt instruments sold on the secondary market via individual transactions or portfolio sales. BH Capital’s investment strategy will be to take advantage of opportunities presented by recent economic disruptions in order to acquire a blend of performing and non-performing loans secured by commercial real estate and other types of commercial/industrial assets.
“BH Capital plans to acquire loans originating from the full spectrum of U.S. financial institutions, including sound, distressed and failed entities,” Jason Mattox, chief administrative officer of Behringer Harvard,” tells MHN. “These may or may not include commercial real estate asset loans, of which a portion could include apartments.”
BH Capital will create and manage a series of private, closed-end funds that will be offered to accredited and institutional investors, operating as a separate entity while leveraging Behringer Harvard’s infrastructure, commercial real estate capabilities and other services. Capital will be raised through a variety of sources, including through several independent broker-dealers in Behringer Harvard’s selling group, and by partnering with a range of institutional investors.
BH Capital is positioned to serve lenders addressing maturing debt placed during the U.S. commercial real estate market’s peak years of 2005 to 2007. Loan sales are expected to increase as the FDIC prepares to bring to market hundreds of billions of dollars of commercial loans secured by commercial real estate or other business assets.
“We believe that the next three to five years will offer expanded business opportunities for experienced professionals with proven ability to acquire debt, manage workouts and sell commercial real estate assets in an improving market,” Mr. Michael McKinney, chief executive officer of BH Capital, says in a statement.