Silver3TG:
US CRE Private Debt:

Silverfern seeks to capitalize on the private, off-market information flows coming from its local market origination networks to capture superior risk-adjusted returns through investing in CRE private debt rather than in equity

Silver3TG Investment Strategy

In September 2018, The Silverfern Group and 3650 REIT announced their collaboration for bridge and event-driven lending secured by U.S. commercial real estate (“CRE”) to be marketed as the Silver3TG Investment Program.

Silver3TG seeks to invest in bridge and event-driven U.S. CRE lending opportunities related to ground-up new construction, renovations, redevelopments, repositionings, and recapitalization of existing real estate properties, where traditional capital is unavailable or not capable of fully satisfying the sponsor’s needs, without employing external leverage.

Goal:

  • Provide attractive risk-adjusted returns

Investment Thesis:

  • Accelerating changes in U.S. CRE Debt market
  • Historically strong fundamentals
  • Time sensitive and complex structure preclude access to traditional capital
  • Value is misperceived

Investment Strategy:

  • Private debt and preferred-equity investments in properties or property-owning entities
  • Expected current cash payments
  • Opportunistic event-driven investing
  • High-yield investments throughout the capital structure

Secured By:

  • Direct or indirect hard collateral

Attractive Alternative To:

  • Traditional real estate investment
  • CMBS
  • Corporate investments

Silver3TG’s unique capabilities provide a competitive advantage:

Coverage and Origination: Real estate is a fundamentally idiosyncratic asset class constantly evolving based on a broad set of local, regional, and national/global economic and market factors. Silver3TG’s 30+ person dedicated Coverage and Originations team divides the market into regions staffed by seasoned local professionals to originate new private debt and equity opportunities with best in class borrowers, sponsors, and partners.

Asset Focus: Silver3TG seeks to provide value-added capital to owners, operators, and developers involved in time-sensitive and complicated projects. The team focuses on transactions that are often overlooked, misperceived, and difficult to underwrite, and our in-house expertise across property types ensures adaptability to varied opportunities.

Financial Sophistication: Silver3TG has extensive experience structuring complex transactions across the capital structure and providing unique and flexible capital solutions to sponsors with non-traditional capital requirements. Silver3TG’s extensive real estate investment experience focuses on fundamentals and provides insight into the merits and needs of complicated real estate investments.

Integrated Asset Management: Silver3TG has in-house capabilities to manage each investment relationship from the point of first contact until the final resolution. The platform has the ability to perform extensive primary due diligence to quantify and manage risk as well as conduct integrated servicing and workout processes that provide material downside protection through workout, bankruptcy, and foreclosure processes.

Strength through Collaboration

Silver3TG is the collaboration of Silverfern and 3650 REIT and seeks to invest in bridge and event-driven U.S. commercial real estate lending opportunities in the range of $70 million to $200+ million per transaction.

Silver3TG’s unlevered bridge lending strategy targets real estate assets that are in transition, focusing on originating loans to well-capitalized sponsors seeking debt capital for properties located in prime U.S. markets.

Silverfern believes that the U.S. CRE market is ripe for Silver3TG’s investment strategy of targeting transitional real estate assets with misjudged value, structural complexity or time sensitivity to provide bridge and event-driven U.S. CRE lending.