Hillside Real Estate Partners Partnering with Institutional Equity to Bring Capital Market Solutions To the Troubled Tenant-in-Common ("TIC") Sector

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Hillside Real Estate Partners is pleased to announce it is working alongside a significant Dallas-based real estate investment firm to provide capital market solutions to the tenant-in-common sector. Hillside Real Estate Partners is focused on providing rescue capital in the form of preferred equity, and other forms of capital solutions as needed, to TIC-owned properties with equity needs of $2.5 million or greater.

Capital pressures can be caused by a variety of factors, including lack of sufficient funds for tenant leasing and rollover costs due to significant tenant departures, negative cash flows and inability to meet debt service obligations, problems with refinancing or re-payment of existing debt due to restrictive prepayment language in most CMBS documents, and unfortunately in many cases, the threat of or actual foreclosure by the CMBS special servicer on the TIC-owned asset.

Traditional capital sources are aware of the problem and would like to capitalize on the distress in the sector; however, they have been frustrated by the various problems resulting from the TIC structure. Those problems primarily stem from governance and control decisions requiring unanimous consent over key asset decisions and funding matters, especially difficult in times of asset distress or significant / unexpected capital calls.

As more and more TIC-owned properties approach loan maturity dates that are spiking in the next four years, TIC investors face several difficult issues. The properties are very difficult to refinance under their current ownership structure and many of the properties have lost value since the property was originally acquired by the TIC investors.

Hillside Real Estate Partners is managed by Dwayne Toler and Jim Vincent. Combined, they have over 50 years of experience providing lending and capital market equity solutions to troubled real estate deals and entities. Their experience includes serving as both principal and advisor in numerous real estate transactions and restructurings / recapitalizations across the country.    

Parties interested in learning more about Hillside Real Estate Partners and its approach to troubled TIC-owned properties should contact Dwayne Toler at 214-269-2350 or by email at dtoler(at)hillsidere(dot)com.

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Dwayne Toler
Hillside Real Estate Partners
+1 (214) 269-2350
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Jim Vincent
Hillside Real Estate Partners
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