Broadshore CapitalPartners is expanding its debt program with the additionof a special situations debt group. Donald Sheetswill serve as managing director of the new group, joining the firmfrom Clarion Partners. The new group will manage amix of performing, sub-performing and non-performing commercialmortgage debt acquired from banks, insurance companies, governmentagencies and special servicers.

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"Broadshore has been active originating high-yield debt as partof our existing debt strategy and want to broaden ouractivity.  Adding the special situations debt group teamwill accelerate our growth and diversify the asset classes withinour existing program," Bleecker P. Seaman, co-CEOof Broadshore Capital Partners, tells GlobeSt.com. "The SSDGstrategy of buying performing, sub-performing and non-performingdebt at a discount complements our existing originationsbusiness.  The timing is particularly advantageous as thisopportunity set should increase in the event of a marketslowdown."

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James Pomeranz and KevinPertsovsky will join Sheets in leading the new group. "Theteam has deep experience with the strategy; the two senior partnershave worked together for upwards of 10 years in this space withboth having over 20 years of direct real estate experience," saysSeaman. "They bring a client mandate, which also is an existinginvestor with Broadshore, providing synergy with the existing debtteams.  It also allows the SSDG group to hit the groundrunning. The team is based in New York and will remain asBroadshore establishes an office in this key market to support boththe SSDG business and our broader investment activities."

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The group will focus on quality real estate with first-liencommercial real estate mortgage credit and principal balancesranging from $5 million to $30 million-plus. "We expect to continueour high-yield origination business, which has been focused onbridge and construction financing, with a targeted annualproduction of $200 million-plus per year," says Seaman. "With themandate that SSDG brings, our goal is to invest an additional $200million to $300 million per year in the SSDG strategy, resulting inexpected combined debt activity of up to $500 million in 2020."

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The new group was part of Broadshore's strategic goals for 2019,stemming from the company's consolidation. "We want to take adisciplined approach to strategically adding capabilities thatexpand upon our existing strategies as well as selectively addingnew investment vertical," says Seaman. "We added to our seniorleadership team in 2019, which were focused on our multifamilyinvestment business as well as hiring a head of capitalraising.  In 2020, we will look to add to the SSDG team aspart of their continued growth within Broadshore and willopportunistically add to our multifamily, hotel and debtorigination investment teams dependent upon business volumes."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.