• Directed Capital: Non-Conventional Approach to Solving Commercial Real Estate Lending and Investing

    Directed Capital is an opportunistic real estate finance firm that strategically acquires, originates, manages and repositions commercial loans. The firm develops practical, effective loan workout solutions to help borrowers re-access traditional financing channels and provide investors with superior returns uncorrelated with the market. Directed Capital Advisors, LLC is a SEC Registered Investment Advisor (RIA).

    Firm Overview

Here’s how many millions investors pumped into the latest fund by a St. Pete firm

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By: Margie Manning
November 14, 2016

Directed Capital Resources raised $77 million for its seventh and largest investment fund to date.

Directed Capital, a distressed assets workout specialist firm headquartered in St. Petersburg, also received a $40 million increase in its revolving credit facility from Goldman Sachs Bank USA.

The financial resources provided by investors and by the bank give Directed Capital more capital to deploy as it works with borrowers to turn around troubled commercial mortgage loans, which makes up about 70 percent of its business, said Chris Moench, CEO.

“We’re buying under-performing notes, as opposed to bank REO [real estate owned, or foreclosed] property,” Moench said. “We’re buying loans that still have a payment string to them, distressed but not down and out loans.”

The remaining 30 percent of Directed Capital’s business involves purchasing distressed property as well as opportunistic lending, such as bridge loans for deals that need to be closed quickly.

The just-closed fund, DCR Mortgage Partners VII LP, already has acquired more than $160 million in assets and quarterly distributions to investors began in April, a press release said.

DCR Mortgage Partners VII and the six earlier funds combined have raised more than $200 million in equity and acquired more than $1 billion in under- performing commercial real estate mortgage loans.

Directed Capital acquires, manages and repositions distressed commercial mortgage loans in the $1 million to $10 million range.

While the economy has been recovering, Directed Capital continues to see opportunities.

“It’s a big financial system and there’s always a subset of loans made that will have issues,” Moench said.

The company has been adding employees, and now has about 30 people on staff. It’s looking at adding additional space in Synovus Bank building in downtown St. Petersburg, where it has its headquarters. It also has an office in San Diego.