The Lynd Group, a leading multifamily real estate firm, won an assignment to turn around an $800 million, 11,000-unit The Lynd Group Awarded Turnaround Assignment for 11,000-Unit Distressed Multifamily Portfolio that became distressed due to headwinds in the commercial real estate market.
Equity holders hired the Lynd team because of its 40-plus years of operations and asset management expertise. Lynd will now take over management of each property in the distressed multifamily portfolio, conduct a deep-dive assessment and uncover ways to boost value through better operational efficiencies. There are over 50 properties located throughout 12 U.S. states. The portfolio will be overseen by an independent fiduciary.
Lynd’s CEO, A. David Lynd and CIO Constantine Scurtis rolled up their sleeves and worked directly with the owner and his investors to land the assignment.
“Due to the sheer size and complexity of the transaction, we needed all hands on deck,” Lynd said. “It was fun getting into the weeds on this one. We are seeing a lot of value being eroded due to poor on-site execution. This is why we are in business.”
The owners purchased the distressed multifamily portfolio over the last several years as a value-add play, but when interest rates and costs started to soar, the economics prevented them from making the needed capital expenditures.
“This is where Lynd comes in,” Scurtis said. “Through our many years of experience in operations, we have the skills to evaluate each property, identify what can be improved, execute the turnaround plan, and regain the lost value. Once this is accomplished, the goal is to sell or refinance.”
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.
