SL Green Realty plans to start raising funds for a $1 billion opportunity debt vehicle this month targeting New York City, according to its quarterly earnings statement.

It is joining numerous other investors eager to take advantage of the distress and/or troubled assets expected to come online in the US markets over the next year. Many of these properties and paper have sound fundamentals – not counting the office asset class – but are underwater on debt and the owners do not have the wherewithal or desire to kick in further equity for refinancing.

Another recent example is a $1 billion fund that RXR and Ares Management are forming to buy distressed office assets in New York City. The two have kicked in $500 million and expect to raise the remainder. They are only planning to invest in assets that are still competitive but need new capital for renovations or debt restructuring – a category that RXR CEO Scott Rechler described to the Financial Times as "that middle, class-A part of the market."