Sortis Holdings Inc., an alternative investment fund manager, has launched its sixth investment fund, the Sortis Distressed Opportunity Fund, which will seek to capitalize on what it deems a “once-in-a-cycle” real estate and business opportunities created by the COVID-19 global pandemic and subsequent economic fallout.
The Sortis team does not estimate a lengthy recession following the pandemic, however they believe that the crisis will have a deep enough impact on certain areas of the real estate market to create “special situation opportunities.”
The fund will remain asset class agnostic, but the management team is eyeing a few particular areas within the real estate market initially. The Sortis Distressed Opportunity Fund will look to buy qualified distressed debt, physical real estate, and select operating businesses across the Western United States. This could include failed projects, discounted performing and non-performing loans, foreclosures, bankruptcies, and other complex situations.
Fund officers will include Sortis Holdings president and chief executive officer Jef Baker, executive chairman Paul Brenneke, and asset manager Sam Ross.
“Our team and platform worked through the last recession, to successfully underwrite and sell over a billion dollars of distressed real estate loans and assets from bank balance sheets,” said Brenneke. “This background added to our lending and real estate developing expertise puts us in the perfect position to bring significant value to our investors participating in the opportunities this current economic environment provides.”
Other Sortis funds include the Sortis Income Fund, the Sortis Growth Fund, the Sortis Opportunity Zone Fund, and two project specific opportunity zone funds.
Based in Portland, Oregon, Sortis Holdings is an investment firm with a primary focus on real estate, both as a lender and as a direct investor. The firm also develops real estate through its affiliate companies.