Business Specialties Development
Aug 20, 2008
Omega Commercial Finance Corp. is creating and will soon launch Omega Opportunity Fund I L.L.P., it has announced. The new fund will focus on distressed commercial real estate development projects that have been delayed, or in some cases, temporarily halted in the United States and Canada. The fund has already identified multiple high-end office, hotel, retail, and multi-family opportunities. Among the specific criteria for the fund, a development must be prepared for immediate vertical construction, with a proven development team in place. The exit strategy of the fund, since their “cost of capital” to the borrowers will exceed standard bank rates, is to allow Omega’s lending arm the ability to structure the permanent financing. Omega Commercial Finance has also agreed to work exclusivity with AJM Development Inc., a development firm based in Arizona, to identify quality projects that fit its requirements. Andrew McAdams, president of AJM, has worked with Omega on this project over the past year. Collectively, they have locked-up $2.1 billion in projects ranging from hotel developments located in major metropolitan areas to Class A office developments and waterfront developments with retail as the majority core assets. Also, Omega, with the assistance of AJM, has arranged up to $360 million dollars of capital through letters of intent, in order to launch the fund, and both anticipate capitalizing the fund with up to $1 billion dollars by year end.
Omega Commercial Finance Corp. is creating and will soon launch Omega Opportunity Fund I L.L.P., it has announced. The new fund will focus on distressed commercial real estate development projects that have been delayed, or in some cases, temporarily halted in the United States and Canada. The fund has already identified multiple high-end office, hotel, retail, and multi-family opportunities. Among the specific criteria for the fund, a development must be prepared for immediate vertical construction, with a proven development team in place. The exit strategy of the fund, since their “cost of capital” to the borrowers will exceed standard bank rates, is to allow Omega’s lending arm the ability to structure the permanent financing. Omega Commercial Finance has also agreed to work exclusivity with AJM Development Inc., a development firm based in Arizona, to identify quality projects that fit its requirements. Andrew McAdams, president of AJM, has worked with Omega on this project over the past year. Collectively, they have locked-up $2.1 billion in projects ranging from hotel developments located in major metropolitan areas to Class A office developments and waterfront developments with retail as the majority core assets. Also, Omega, with the assistance of AJM, has arranged up to $360 million dollars of capital through letters of intent, in order to launch the fund, and both anticipate capitalizing the fund with up to $1 billion dollars by year end.
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