Lynd and Declaration Partners form programmatic partnership to invest in multifamily asset workouts and distressed situations
This article was originally published on Globe Newswire
SAN ANTONIO, TX, July 17, 2024 (GLOBE NEWSWIRE) — 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 PR
ttemplin@boardroompr.com
954-370-8999
Chris Ullman, Declaration
chris@chrisullman.com
202-641-2234
