Lynd and Declaration Partners form programmatic partnership to invest in multifamily asset workouts and distressed situations
17 Julio 2024 - 7:45AM
The Lynd Group, a national multifamily owner, operator and
developer, has formed a programmatic partnership with Declaration
Partners to invest capital for workout and distressed situations
primarily involving multifamily assets. Lynd and Declaration are
actively advising on several portfolios across the U.S. involving
23,000 multifamily units.
San Antonio, Texas-based Lynd Group is leaning on its
operational acumen and experience buying and turning around
distressed assets over the past 25 years to assist other
owner/investors work through financial challenges caused by
post-pandemic interest rate escalation, increased costs, tighter
banking lending and an influx of new supply.
“As we enter a phase of significant change in the real estate
landscape, where adaptability and agility will likely be essential,
we saw the importance of aligning ourselves with experienced
partners who share our vision and are well-positioned to capitalize
on emerging opportunities,” said Lynd Group CEO A. David Lynd. “We
are confident that our new partnership achieves this goal, and we
look forward to leveraging our combined strengths to navigate the
dynamic market ahead.”
“We are pleased to form this strategic partnership with the Lynd
Group, a move that aligns us with a seasoned and experienced group
poised to capitalize on attractive investment opportunities in
today's market,” said Ron Dalal, a partner at Declaration Partners,
which has offices in New York and Washington, DC. “Lynd’s extensive
relationships and demonstrated track record in sorting out complex
situations – particularly in down cycles – are complementary to
Declaration’s flexible and longer-duration capital. We are excited
to work with Lynd towards our goal to recapitalize/acquire
properties as co-GP or common equity as well as provide gap capital
in the form of preferred equity for overleveraged owners of
apartment communities.”
Navigating choppy waters is in Lynd’s DNA. Since the 2008-09
financial crisis, the firm has purchased more than $1 billion of
distressed notes secured by 40 properties, collectively requiring
extensive restructuring, foreclosure, and bankruptcy actions.
Nearly 45 years in business, Lynd has successfully operated in
numerous down cycles gaining considerable experience in capital
markets, property management, asset management, construction
services, and legal.
“Since 2008, we got pretty good at investing in and turning
around distressed real estate and believe we are well qualified and
positioned to help others who are trying to hold onto their
properties,” said Lynd Group COO Justin Utz.
In 2024, Lynd has been retained to advise on, among others, a
10,000-unit portfolio in the Northeast U.S., 1,000 units in Central
Louisiana, and 1,000 units in the South-Central U.S. Most recently,
the firm signed a joint venture agreement with a Houston-based
apartment investment firm to evaluate and shore up a 2,600-unit
portfolio.
“This new partnership with Declaration is quite timely given the
number of opportunities we’ve already seen in the marketplace. Our
venture has the ability to move quickly towards decisions and
closing,” said Constantine Scurtis, Lynd’s Chief Investment
Officer.
Lynd’s goal is to successfully work with each lender to minimize
the loss of par value on each asset by crafting a custom-made
solution that addresses specific needs and creates value for both
sides. When hired as an advisor, Lynd takes over property
management, walks through each unit and conducts a series of audits
on existing leases and renovation needs.
“Many times, the borrower and lender have reached an impasse
where sharing facts and dealing in reality become a challenge,” A.
David Lynd said. “Our role is to bring a fresh set of facts with a
clear path forward to devise a better result than foreclosure and
disputes where both sides practice mutually agreed
destruction.”
ABOUT THE LYND GROUP:The Lynd
Group is a fully vertically integrated real estate organization
based in San Antonio, TX with a long-standing history in the
acquisition, development, and management of residential and
commercial real estate. Operating units throughout the
U.S., Lynd ranks as one of the premiere multifamily
management companies in the country. For more information,
visit www.lynd.com.
ABOUT DECLARATION PARTNERS: Declaration Partners is a
private investment firm that seeks to be a value-added capital
partner and strategic resource to founders & entrepreneurs,
management teams, and asset owners. Anchored by the family office
of private equity veteran and philanthropist David M. Rubenstein,
Declaration invests on behalf of family offices and like-minded
institutional investors. Declaration’s approach emphasizes
partnership born from its family office heritage while seeking to
achieve favorable long-term outcomes with strong alignment.
Declaration has approximately $2.2 billion in assets under
management across its private investment strategies, which include
real estate, tactical growth equity, GP solutions, and other
opportunistic strategies. The firm was founded in 2017 and is
headquartered in New York with an office in the Washington, DC
area. For more information, visit
https://declarationpartners.com/.
Media Contacts:Todd Templin, Boardroom
PRttemplin@boardroompr.com954-370-8999
Chris Ullman, Declarationchris@chrisullman.com202-641-2234