Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MIAMI-Locally based Sky Development Inc. plans to establish a $300-million fund called Sky Real Estate Fund I to buy distressed properties in numerous US cities. Leveraging personal contacts and institutional investors in Europe, Sky Development founder and CEO Yizhak Toledano is finalizing the targeted investment partnership.

The fund will target office buildings, shopping malls and centers, condo conversions, hotels, apartment rentals and unfinished condos. Sky anticipates that the fund will acquire a portfolio in excess of $1 billion in commercial and residential properties with an exit strategy of one to four years. The timetable for sale of individual properties will vary depending on the property.

Toledano tells GlobeSt.com that a variety of investors from Europe and the US have contributed to the fund. “We believe it is the right time to focus on distressed investments given that credit markets are currently experiencing dislocation, and default rates are expected to rise,” Toledano says.

Toledano adds that the fund will target areas that have been hit hard by the downturn in the housing market, such as Florida, California, Arizona and Georgia. Sky will target properties that will garner a 20% to 30% minimum return on investment. He anticipates that the fund will begin considering acquisitions within the next 90 days. “Banks are closing their faucets,” he says. “There are a lot of sellers that have loans coming due that won’t be able to pay them and be forced to sell properties.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.