T2 Capital Management, a Real estate financier announced the closure of its $9 million, funds of T2 Opportunity real estate, which focuses on the acquisition of short-term debt and equity in the United States commercial real estate sector.Wheaton, Ill.-based T2 Capital Management stated the fund survey every CRE property types, including industrial, retail, hospitality, multifamily, self-storage and senior housing.
T2 Capital also invests in senior debt, mezzanine debt, preferred stock and a combination of these types of loans. T2 is known to pick cherries from high quality assets for investments that do not usually go around the capital to the attention of the big private equity firms.
"This hybrid debt and equity investment strategy, along with the ability to quickly deploy the capital that sets us apart from conventional sources of capital such as bank financing," stated John Southard, T2 Capital Management director.
T2 capital aims to focus on interim investments and intends to return capital to investors in the three years after closure of the fund. T2 Capital's conservative approach of capital comes at a time when Deloitte provided financial advice darker clouds ahead of large commercial real estate financing.
Deloitte said in a Thursday report that modest GDP growth, unemployment remains high and housing demand weakened delayed recovery in the segment. About $ 1.7 trillion in CRE loans are due among 2011 and 2015. As per to Deloitte, 60% of these loans are under water, making it difficult for occupants to refinance and expands their terms.
