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L Street Capital is a private equity fund that invests in distressed debt secured by institutional quality real estate in top-tier U.S. Markets, with a particular focus throughout the Southeast. L Street targets deed of trust and judgment liens at steep discounts to their face value due to significant but addressable complexities.
L Street frequently purchases junior and subordinate debt positions in bankruptcies, foreclosures, or workouts at fractions on the dollar; recovering face value of the debt by challenging defects in the senior positions identified during our rigorous evaluation process.
L Street evaluates hundreds of such positions a month, typically identifying 10-20 falling within its preliminary investment criteria. L Street then engages in intensive legal, title, and on-site property review to determine whether highly-discounted debt is capable of achieving outsize return through negotiation, work-out, or litigation with senior lien holders.
Our proprietary, mission-developed software downloads, inventories, sorts, and ranks gigabytes of data every day from hundreds of federal, state, and county repositories seeking potential debt investment opportunities across register of deed filings, judgment recordings, bankruptcies, business litigation, and even high net worth divorces.
Our team of analysts, attorneys, and real estate veterans identify senior and subordinate debt positions secured against valuable real estate in prime U.S. markets.
We particularly seek out deeply-discounted second and third lien positions where active measures challenging senior positions can reap exponential returns.
In purchasing distressed, non-performing, and subordinated debt, we frequently negotiate entry positions at less than 20 cents on the dollar of the debt’s face value.
We then take any number of active measures –including litigation – to challenge vulnerable senior positions, rerouting the recovery waterfall to our holdings.
We present senior holders with the deficiencies we’ve identified in their position. Those holders often prefer to accept a carve-out of their recovery, to us, to avoid a challenge invalidating their entire position.
Because we purchase real estate backed debt, returns are realized upon the sale of the property, often in less than 90 days.