Denholtz Properties announces the launch of the Denholtz Opportunity Fund II.

The Denholtz Opportunity Fund II provides tailored capital structure solutions through preferred equity or mezzanine debt, offering proceeds of $5 million to $25 million per project, subordinate only to first mortgage debt. Preferred investment geographies include New York, New Jersey, Pennsylvania, Florida, and the Southeast. The Fund is designed to support commercial real estate owners navigating temporary capital challenges such as operating deficits, refinancing obstacles, unmet sale projections, cost overruns, and lower-than-expected leasing performance.

Managed by Denholtz Properties’ CEO Steven Denholtz and President Stephen Cassidy, the Fund’s custom capital solutions are built on the company’s extensive experience in asset management and a deep understanding of the needs of today’s real estate operators.

“As owners ourselves, we are acutely aware of the capital challenges today’s macroeconomic environment brings to owners and developers,” said Steven Denholtz. “We are proud to introduce our bespoke rescue capital solutions to the commercial real estate community to help companies find success in a difficult market.”

According to J.P. Morgan Private Bank, nearly $1.5 trillion of commercial real estate debt is due to mature within the next two years. Despite the growing need for financing solutions, the Mortgage Bankers Association anticipates a 38% decline in commercial and multifamily mortgage borrowing and lending in 2023 compared to 2022. Consequently, there will be an exponential increase in the need for preferred equity and mezzanine debt to bridge the financing challenges property owners currently face.

Stephen Cassidy added, “The financing gap has been driven by a multitude of factors, including interest rate hikes and several high-profile commercial banking failures in early 2023. As a result, many operators continue to struggle to secure financing for projects under construction or in operation. Our rescue capital platform is designed to provide immediate financial assistance to help close the financing gap and support commercial real estate developers and operators in bringing their projects to life.”

More information about the Denholtz Opportunity Fund II and scheduling an introductory call with the Denholtz Properties team is available here.