Los Angeles-headquartered Younan Properties Inc., a privately held real estate investment group that specializes in acquiring Class A office properties, has established a new commercial debt group and opportunity fund to acquire underperforming commercial loans backed by commercial real estate.
The Younan Finance Group initially will invest up to $200 million in underperforming loans and distressed office properties throughout the country in transactions ranging from $5 million to $50 million, according to the firm. The fund will acquire mispriced mezzanine loans, B-notes, whole loans and nonperforming first mortgages.
‘We believe commercial real estate has entered into a period where there will be fewer opportunities to acquire premium assets directly on acceptable terms,’ explains Zaya S. Younan, chairman and CEO of Younan Properties. ‘We are going to utilize this time to establish and grow our new finance unit using the same proprietary practices and disciplines for which we have become recognized in order to continue to deliver superior returns to our investors.’