Banks are the largest CRE lenders in the U.S., holding over 43% of all multifamily and commercial mortgage debt outstanding. They also the primary provider of credit to consumers and businesses that is critical to the U.S. economy.

Strained capital and liquidity resources and increased scrutiny from regulators and other stakeholders is creating headwinds that will result in a bias for smart, decisive action.

We help banks manage commercial real estate risk by providing portfolio restructuring or liquidity solutions. Many banks find themselves in the position of having excess commercial real estate exposure, with portfolio sales providing regulatory relief, liquidity, and freeing lending capacity.

Oculus R focuses on commercial real estate credit across the capital stack and accommodates performing and underperforming loans across all loan sizes and asset classes. We provide single asset and multi-asset portfolio solutions and can create liquidity for loans with upcoming maturities, non-performing loans and REO.

Our ability to evaluate underlying assets gives us unique insight into value across the commercial mortgage-backed securities capital stack, particularly for deals with elevated delinquencies and write-downs, high sector concentrations, and increasing volumes of loan assets in special servicing. 

Special servicers of distressed CMBS loan collateral need a wide range of liquidity options for loans and REO in special servicing, as an increasing number of loan assets are assigned a court-appointed receiver or enter foreclosure.  Master and special servicers will also be required to manage through an upcoming wave of loan maturities.

We find value in a wide array of opportunity in the down-stream liquidation of stressed assets within CMBS including:

• Note sales, with or without modifications
• Receiver sales or sales and assumptions
• Deed in lieu of foreclosure

We see opportunity in the well-documented volume of upcoming commercial mortgage maturities – totaling over $1.4 trillion between 2024 to 2026.  Over half of this maturing debt is held by banks, with the highest concentrations in mid-sized and community banks. Unfolding during a period of unprecedented credit contraction in the banking system across all consumer and commercial asset classes, banks will be forced to take the maturity challenge head-on.

We provide credit and equity solutions for maturing loans – regardless of their payment status or degree of potential under-collateralization.