Sector challenges

• Market cycles are compressing, and real estate investors must navigate capital market volatility, evolving asset classes, and heightened ESG expectations.

• Rising interest rates, refinancing risk, and shifts in demand (e.g., hybrid work models, retail consolidation) require new underwriting frameworks.

• Owners and operators are facing liquidity constraints, requiring creative financing and asset-level optimization to unlock trapped value.

The R²P value-add

• Capital stack reengineering including preferred equity, structured credit, and recapitalization to address maturity walls and liquidity challenges.

• Portfolio repositioning and asset-level strategy to align with post-COVID usage trends and investor demand.

• Distressed asset acquisition advisory and debt workout support for stakeholders seeking to reposition underperforming assets.

Impact brief

• R² Partners was retained by a mixed-use developer facing capital constraints across a $300M portfolio.

• We structured a $45M preferred equity injection, renegotiated senior debt covenants, and facilitated joint venture discussions to bring in a long-term strategic partner.

• As a result, the developer stabilized the portfolio, achieved 92% occupancy across properties, and recapitalized for a new development phase.