Opportunity Investment Capital is an opportunistic Asset Based Fund focusing on commercial real estate. Offerings including but not limited to distressed asset acquisition, credit enhancements, bridge loans, short sale or other opportunities relating solely to commercial real estate primarily in the Southeastern US.
The Company is seeing tremendous opportunities as commercial banks and traditional forms of real estate finance are low on capacity or are adhering to stricter guidelines. Because of the US banking situation, deal flow exceeds current capacity. The Southeast is an underserved market for these types of products. Opportunity Investment Capital expects 2-4% of commercial real estate transactions to need Opportunity Investment Capital’s services. With over 30,000 commercial real estate transactions annually in the Southeastern US, there are ample opportunities for Opportunity Investment Capital’s strategy.
Given this opportunity, each investment selected for the portfolio is expected to yield a gross return of 18% to 45%, (not including any equity components), depending on the nature of the transaction, loan amount, ratios, term and the market conditions at the time of the transaction. Income is derived from fees, points, interest rate, and equity.
Fund A was started in 2006 as a concept fund using the general partner’s own assets under the name Real Estate Guarantors and Intermediary Services, Inc. (REGAIS). Subsequently, the corporate name was been changed to Commercial Real Estate Capital, Inc. and is doing business as Opportunity Investment Capital, Inc. During this time over fifty deals were reviewed, ten were closed, and nine were successfully exited with only one needing a work out. This portfolio realized a gross return of between 10%-72% per deal.
The Opportunity Investment Capital Management team combines four people having a total of 24 years of deal origination experience. Billie Attaway, founding member, is a serial entrepreneur/real estate investor who started and successfully exited two companies (one to a publicly traded company). Along with Director of Business Development – Michael Rowell, Director of Operations and Risk Management – Charles Lineberry, and Attorney Daniel Vallini, Billie Attaway has worked with this team in various capacities beginning with Fund A in 2006.
Opportunity Investment Capital is raising an open ended second fund for investments initially in the Southeastern US with a goal of raising two additional tranches in an amount totaling $1 Billion for investment nationwide. The fund will break escrow at $25 Million.
The Manager has a data base of 50,000 commercial realtors nationwide. Additionally, deals will be sourced through banks, mortgage brokers, attorneys and accountants. Typical deal size will be between $100,000 and $5,000,000. Risk is mitigated by professional advisors, service providers, advisory board, portfolio diversification, physical location diversification, and product mix. Underwriting guidelines equal to or exceeding a typical bank with second opinions on appraisals and independent commercial real estate broker’s opinions on value. Single Purpose LLC strategy with Management Certificates held in escrow.
The fund has a life expectancy of three to five years. Dividends are reinvestred or partial distributions at the discretion of the manager. Management fee: 2% Incentive fee: 20% Hurdle rate: 6%