Meeting the Challenges of TIC Deals

Schelin: “Many of the legacy tenant-in-common transactions that were done in the last cycle involved more than 30 separate TIC investors.”

NEWPORT BEACH, CA—It’s crucial that legacy owners have a realistic understanding of the current value of their property and both the tax implications and financial-return implications of moving forward with the new capital structure, Landmark Capital Advisors director Ethan Schelin tells GlobeSt.com. Schelin is focused on originating, structuring and procuring equity and debt capital for real estate and related assets and recently served as advisor on a deal where Landmark raised $42 million ($32 million in bridge debt and $10 million in equity) for the recapitalization of a 605,000-square-foot office complex in Connecticut. The proceeds will be used to pay off existing lender, stabilize the property, purchase the TIC interests of the investors who needed to exit the investment and roll up the TIC investors into a limited-liability company.

Prior to joining Landmark, Schelin raised capital for institutional real estate clients and sold non-performing assets for a Beverly Hills based advisory shop where he was directly involved in the capitalization or sale of more than $500 million in real estate and related assets. In prior roles, Schelin was directly involved in the acquisition of more than $300 million in commercial real estate assets and the asset management of a portfolio valued at more than $2 billion.