Chicago-Area Real Estate Veterans Launch New Firm Focused on Distressed and Fractured Holdings

Edited: Jennifer Brenner
Source: Tungsten Realty Advisors

Industry veterans Michael Flight and James Stillo have announced the formation of Tungsten Realty Advisors LLC, a real estate investment and operating firm that specializes in the acquisition and repositioning of distressed single family homes, fractured condominium developments, value-added apartment projects, high current yield multifamily acquisition opportunities, non-performing loans and mezzanine loan workouts.

A joint venture of Concordia Realty Corporation and The Skydan Group, which are owned by Flight and Stillo respectively, Tungsten Realty Advisors offers a unique blend of entrepreneurial and institutional experience with a long and successful track record in residential and commercial projects dating back to the late 1980s. The combined capabilities of the two firms make Tungsten Realty Advisors uniquely qualified to partner with others on a local, regional or national basis.

"Our strategy is to maximize returns through economy of scale and utilize technology to maximize operational efficiencies," said Flight. "There are currently large distressed opportunity funds with capital, and many smaller operators with limited capital. However, few companies, if any, combine the know-how through years of operating experience with financial capabilities. Tungsten Realty Advisors offers that combination."

In pursuing that strategy, the company has a competitive advantage because it will operate in a niche between the large opportunity funds that have to place more than $2 million per transaction, and small local operators who lack consistent access to capital. In addition, the combined experience of Tungsten Realty Advisors and its partners will provide distinct competitive advantages, such as:

• The ability to identify and locate profitable investments;
  
• Significant experience in REO, foreclosures, workouts, distressed assets and non-performing notes;
  
• An established operational platform with institution-quality financial controls, property management and reporting systems;
  
• The construction expertise of a licensed general contractor with experience in evaluating, repairing and renovating properties; and
  
• A proven sales and marketing team.

Tungsten Realty Advisors is currently seeking to build relationships with sources of distressed inventory and institutions that are holding significant numbers of REO properties. "Beyond our capabilities and experience, we're different from our competitors because we have the access to capital, and the ability to acquire the properties and operate them until the time is right to sell," said Flight.