Fri, Nov 27, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

SouthernSun Asset Management launches real estate opportunity fund

Wednesday, September 15, 2010
Opalesque Industry Update - SouthernSun Asset Management, a research-driven investment management firm with 23 employees and more than $1.3 billion in assets under management, announced that it has hired the former management team of Mercury Investment Management, LLC, and incorporated all of the firm’s operations onto the SouthernSun platform. Earl Blankenship, a co-founder of the Mid-South office of CB Richard Ellis and former President and CEO of Mercury, will lead the firm’s real estate investment strategy. Joining SouthernSun with Mr. Blankenship are Jim Dorman, Stuart Harris and Garrott McClintock.

SouthernSun’s Founder, CEO, and CIO, Michael Cook, said, “I have known and admired Earl for many years, and believe that his proven ability to identify undervalued commercial real estate assets will meaningfully diversify and maximize value from the SouthernSun platform. More specifically, his addition to the team allows us to: 1) leverage our firm’s high-quality human capital, 2) diversify SouthernSun’s product offering with a non-correlated asset class and 3) capitalize on the burgeoning distress in the commercial real estate market. Moreover, by assimilating his team to focus on real estate, our existing equity investment team remains focused entirely on our core business, which is investing in our Small Cap, SMID Cap, and Focused Global strategies.”

“We have been conducting deep market reconnaissance for the past year to assess proper timing and structure for a fund,” Mr. Blankenship added. “Our experience managing workouts and restructurings for distressed properties in mid-tier markets provides a unique and often overlooked niche opportunity. The alignment with SouthernSun helps ensure we have the people, process, and strategy to succeed.”

The Fund is seeking to acquire financially distressed office, multi-family, and retail assets in mid-market urban centers at discounted prices resulting from deteriorated market conditions. The real estate team is overseeing the management of the assets to stabilize and improve rental income and, ultimately, to sell into improving capital markets at non-distressed pricing.

According to a report issued by the Congressional Oversight Panel, about $1.4 trillion in commercial real estate loans will reach the end of their terms between 2010 and 2014, on nearly half of which the borrower owes more than the underlying property is currently worth. Increased vacancy rates have exerted downward pressure on the value of commercial properties. These market forces have created a buying opportunity for investors with liquidity.

(press release)


What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November