RRA Capital is an institutional investment manager of commercial real estate credit products across the spectrum of real estate debt. This includes senior loans, mezzanine debt, and preferred equity. Since 2008, RRA has focused primarily on value-add, distressed, and other event-driven, middle market loan opportunities across the United States. These opportunities:
- Demonstrate a lower correlation with the overall real estate market than do permanent financing.
- Offer borrowers financing flexibility for complex business plans that traditional banks are ill-equipped to handle.
RRA seeks out unique investment opportunities that are not reliant on market fundamentals. These opportunities typically arise from idiosyncratic or event-driven catalysts such as loan maturities, lease expirations, and repositions. As such catalysts are generally short-term in duration, RRA’s investment team exploits them to reduce exposure to unknown market trends and more effectively reprice the market on an ongoing basis. RRA believes this short-term lending strategy is well suited to the modern disruptive economy, in which building functionality and desirability change often and require frequent repositions. RRA seeks to invest during a building’s reposition phase, where its economic life can be renewed; and the loan amount is based on the depreciated value of an asset with substantial expectation of value growth during the term of the loan.
HOW IS RRA CAPITAL DIFFERENT?
The people of RRA firmly believe that in order to attract the best lending opportunities, the firm needs to maintain a positive reputation as a competitive lending company known for fair prices and excellent service. RRA does this primarily through a fully-integrated lending platform that gives its credit team absolute control throughout the lending process: underwriting, closing, and loan servicing. Because all decision makers and servicing personnel are co-located, RRA offers the highest degree of certainty of execution and quality service.
Expanded Access to Unique Investment Opportunities
Given its attention to great service, RRA is afforded a wide pipeline of investment opportunities from best-in-class sponsors and brokers across the United States. Having started in the industry as real estate sponsors, RRA’s investment team can leverage its development experience to quickly assess the feasibility of real estate business plans regardless of the product type and submarket. Nonetheless, RRA relies on partnering with sophisticated sponsors that have proven experience in their product type and market. RRA further validates business plans through market data, extensive property and borrower research, market participant interviews, professional third-party reports, and site visits prior to each investment’s approval.
Dedicated to Transparency
Just as important as the investment itself is the investment process. RRA brings transparency to every transaction so our investment team can be held accountable for its results. Honesty and integrity are key investment ingredients in everything we do. As things will not always go as planned, RRA’s investment team fosters an attitude of being quick to own mistakes, make things right, and learn from experience. RRA’s dedication to transparency keeps all stakeholders well informed and, more importantly, keeps all incentives aligned. RRA values a radical commitment to corporate and self-improvement, so that the investment process and capabilities of the firm are always improving. As markets evolve, RRA is dedicated to readdressing its investment strategies so that it can best meet the needs of its clients and customers.