• 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

St. Pete Company Getting $50M to Buy Distressed Loans

To view original article click Here.

By Michael Sasso

TAMPA — A St. Petersburg investment company has scored $50 million from a subsidiary of Goldman Sachs to buy distressed commercial loans.

And with some financial experts warning of a wave of defaults coming, the company appears to have plenty of troubled debt to choose from.

Directed Capital is a St. Petersburg company that buys loans that are overdue, or in which the borrower may have failed to pay taxes or insurance. It focuses on loans worth $1 million to $10 million.

On Wednesday, the company announced that Goldman Sachs Bank USA, a unit of the Goldman Sachs Group, is giving it a line of credit of $50 million for its newest investment partnership. Directed Capital will couple that with $50 million of equity to give the investment partnership a combined $100 million, Chief Executive Officer Chris Moench said.

The company will use the money to buy distressed commercial loans around the country. Goldman Sachs Bank also is giving Directed Capital a separate $34 million loan that essentially will pay off an existing loan from Wells Fargo. It’s the biggest single infusion of financing in Directed Capital’s 11-year history, Moench said.

A recent Mortgage Bankers Association report said there is nearly $2.4 trillion in outstanding commercial and multifamily mortgage debt in the United States. Many of those loans were made in the early and mid-2000s and are coming due in the next six years. How many borrowers won’t be able to refinance and will default on their loans is a major question, Moench said.

“It’s going to be very slow, and it’s a dance that’s going to play out over the next six years.”