An integrated real estate investment company that arranges mezzanine and senior loans, PCCP, LLC, provides equity and debt financing for middle-market projects spanning the United States. Maintaining relationships with established operators and borrowers seeking flexible capital, the firm looks for opportunities involving properties in need of rehabilitation, recapitalization, redevelopment, and repositioning. Since 1998, PCCP, LLC, has managed over $15 billion in transactions worldwide.
In 2016, PCCP launched PCCP EQUITY VII, a closed-end real estate equity fund. Focused on the middle market, the PCCP EQUITY VII, LP is intended only for equity investments. PCCP EQUITY VII aims to acquire distressed or inefficiently marketed properties located throughout the United States. The fund primarily puts capital into retail, industrial, multifamily, and office properties, while a portion may be used for select development opportunities.
According to a fund prospectus, low unemployment and rent growth has led to a number of attractive investment opportunities in the United States. At the same time, public equities market volatility presented the possibility of slowing capital flows directed toward real estate. At PCCP, a core focus is on meeting cash flow needs in such an environment and taking advantage of situations in which stress turn into distress.
Another factor highlighted in the report was the record number of 10-year loan maturities expected to occur in the 2016-17 period. This reflected the aggressive financing that enabled asset purchases from 2005-07, with numerous vintage funds liquidated and sold. In the current market situation, these assets have returned to values that match acquisition costs. The result is a rush of sales that provide the next buyer with significant value-added benefits. Possessing a credit-focused orientation, PCCP seeks to offer a strategic advantage during uncertain times.
To learn more about PCCP and its real estate investment activities, visit pccpllc.com.