Trecap Acquires Capmark – And a $4.3B Portfolio

In a significant deal involving distressed assets, TRECAP Partners LLC has acquired the real estate equity investment advisory business of Capmark Investments LP, including investment management contracts and general partnership interests in its real estate equity funds.

March 23, 2010
By Allison Landa, News Editor

Courtesy Flickr Creative Commons user Bob Jagendorf

In a significant deal involving distressed assets, TRECAP Partners LLC has acquired the real estate equity investment advisory business of Capmark Investments LP, including investment management contracts and general partnership interests in its real estate equity funds.

Included in the $4.3 billion portfolio are 129 multifamily and commercial properties in the U.S. as well as 41 commercial and multifamily assets in Europe. The investments are held in four U.S. funds, one United Kingdom fund and several single asset/client accounts.

Capmark’s entire former real estate equity leadership team — Robert Fabiszewski, William Martin, Wayne Harris, Paul Dolinoy, and Gene Conway as well as 25 other employees, five of which are in the UK – will join TRECAP to continue managing the acquired funds and client accounts.

Capmark declared Chapter 11 bankruptcy in late October 2009. As of that time, the company had in excess of $500 million of cash and cash equivalents to fund its operations. At the time of the bankruptcy, Capmark president and chief executive officer Jay Levine said: “By constraining the availability of capital … difficult market conditions had a negative effect on all our core businesses.”

In February, Hunt Companies, Inc. announced it would provide TRECAP with additional equity capital and support services to expand its real estate investment management businesses – both private equity and debt platforms. That included capital for the subsequent Capmark deal.

TRECAP was founded in 2009 to provide investment and advisory services to investors as well as insurance firms and sovereign wealth firms. The company has offices in Sarasota, Philadelphia, San Francisco, Atlanta, Irvine, and London.