Lionheart Strategic Management and Schroders Investment Management North America will target $250 million in transitional and distressed real estate credit investments as part of a new loan acquisition agreement. 

The deal with Lionheart, an affiliate of Fisher Brothers that manages capital on behalf of third party investors, will allow Schroders to continue to deploy capital through strategic real estate partnerships. 

The market for distressed deals has been tepid thus far as compared to the last economic downtown. In early 2007, distressed sales accounted for less than one-half percent of all CRE transactions, but by the end of 2010, they were 20% of the total sales market, according to Real Capital Analytics. But today, distressed sales account for a mere one percent of all transactions, according to RCA data.  And with an end to the COVID-19 crisis in sight thanks to multiple vaccine rollouts, it could be that potential distressed debt buyers have missed their chance.