News & Insights

Fairview Celebrates $1 Billion in Real Estate Debt Transactions Since Inception

Fairview Partners Investment Management, LLC ("Fairview"), a leading real estate debt fund manager focused on distressed and special situations, is proud to announce over $1 billion in transaction volume since inception in 2011. This noteworthy milestone followed a run of five successful loan payoffs totaling more than $30 million in proceeds to Fairview's funds and investors during a two-week span at the end of 2023, underscoring Fairview's ability to navigate the complexities of today's financial landscape.

Nels Stemm, Fairview's co-founder and principal, noted that "Fairview's ability to achieve profitable loan payoffs has been especially remarkable in light of recent interest rate increases. Rather than chasing highly competitive opportunities attached to the most favored assets, our team has remained relentlessly focused on gaps in the market where Fairview's capital is most needed, including bankruptcy sales, non-performing loans, secondary markets, sponsor difficulties and non-traditional collateral. This has allowed us to avoid many of the highly competitive situations that proved most sensitive to interest rate fluctuations—and that have now seen significant declines in value and performance tied to the recent historic run-up in rates."

Carson Rasmussen, co-founder and principal, added, "While the 'headlines' on the complex deals we favor can sound riskier, our team has found these opportunities yield the best risk-reward profile available in the real estate credit market—allowing for lower advance rates and negotiation of the most favorable terms and structures—for those who understand how to manage them well. As a result, we are still seeing payoffs where some other lenders are not, to the benefit of our limited partners."

Nels Stemm pointed out that Fairview's recent loan resolution secured by a boutique hotel in Los Angeles provided a great example of its approach. "The loan was over $20 million, providing our investors with high returns at scale. But it also met the criteria of special situations where Fairview has always excelled: The asset, while unique and irreplaceable, was being purchased out of a complex bankruptcy. That limited financing options and allowed us to negotiate favorable terms even though the quality of sponsorship, and capital partnership, was extremely high. In the end, we were paid off in well under a year, earning a return over 20% with a solid multiple."

Having just completed fundraising for its most recent closed-end vehicle, Fairview Investment Fund VII, LP on December 31, 2023, Fairview remains highly active in both acquiring and originating loans secured by a diverse range of assets nationwide, and in managing those loans to liquidity for its investors.

Source: PR Newswire