Broadshore Capital Expands Its Debt Program
The firm adds a special situations debt group, led by managing director Donald Sheets.
“Broadshore has been active originating high-yield debt as part of our existing debt strategy and want to broaden our activity. Adding the special situations debt group team will accelerate our growth and diversify the asset classes within our existing program,” Bleecker P. Seaman, co-CEO of Broadshore Capital Partners, tells GlobeSt.com. “The SSDG strategy of buying performing, sub-performing and non-performing debt at a discount complements our existing originations business. The timing is particularly advantageous as this opportunity set should increase in the event of a market slowdown.”
James Pomeranz and Kevin Pertsovsky will join Sheets in leading the new group. “The team has deep experience with the strategy; the two senior partners have worked together for upwards of 10 years in this space with both having over 20 years of direct real estate experience,” says Seaman. “They bring a client mandate, which also is an existing investor with Broadshore, providing synergy with the existing debt teams. It also allows the SSDG group to hit the ground running. The team is based in New York and will remain as Broadshore establishes an office in this key market to support both the SSDG business and our broader investment activities.”
The group will focus on quality real estate with first-lien commercial real estate mortgage credit and principal balances ranging from $5 million to $30 million-plus. “We expect to continue our high-yield origination business, which has been focused on bridge and construction financing, with a targeted annual production of $200 million-plus per year,” says Seaman. “With the mandate that SSDG brings, our goal is to invest an additional $200 million to $300 million per year in the SSDG strategy, resulting in expected combined debt activity of up to $500 million in 2020.”
The new group was part of Broadshore’s strategic goals for 2019, stemming from the company’s consolidation. “We want to take a disciplined approach to strategically adding capabilities that expand upon our existing strategies as well as selectively adding new investment vertical,” says Seaman. “We added to our senior leadership team in 2019, which were focused on our multifamily investment business as well as hiring a head of capital raising. In 2020, we will look to add to the SSDG team as part of their continued growth within Broadshore and will opportunistically add to our multifamily, hotel and debt origination investment teams dependent upon business volumes.”