Distressed Real Estate

At Heritage Capital, our Distressed Real Estate practice is built to identify, acquire and reposition properties that require capital, vision and operational expertise. We focus on assets where market disruption, operational under-performance or financial distress has opened the door to value creation.

What we do:

• Sourcing and screening distressed opportunities – We target assets facing one or more of the following: physical deterioration or deferred maintenance, owner financial stress (tax liens, loan maturity, foreclosure risk), or market structural change (tenant shift, asset mis-management). realestateskills.com+2Real Estate Financial Planner™+2
• Rigorous underwriting and risk-mitigation – Because distressed assets carry elevated risks, we apply deeper diligence (condition, title, entitlements, market fundamentals) and adjust our return assumptions accordingly. Real Estate Financial Planner™+1
• Turnaround execution & repositioning – Once acquired, we apply a structured plan: stabilise operations, execute capital improvements, re-benchmark leases/operations, and execute a value-enhancement exit strategy or long-term hold.
• Flexible capital & structuring solutions – These assets often require creative financing, longer holding periods, or significant rehabilitation. We blend equity, debt and strategic partnerships to align interests and move decisively.
• Disciplined exit and return realisation – Whether through sale, refinancing or long-term ownership, we calibrate our strategy early to support strong investor returns and risk-adjusted outcomes.

Why choose Heritage Capital for distress-opportunity investing:

• We bring end-to-end real-estate capability—from sourcing, underwriting, development and construction, to operations and exit—so turnaround assets benefit from a full-spectrum platform.
• We apply owner-operator mindset rather than passive flipping: this means structure, governance and alignment with investors for sustainable value creation.
• We focus on markets and assets where structural or operational dislocation — rather than pure cyclical timing — creates sustainable upside, thereby increasing resilience in a changing macro-environment.
• We emphasise transparency, discipline and process— particularly in high-volatility segments where sound governance and clarity of execution matter most.

Our distressed-asset process at a glance:

1. Define acquisition criteria and distress-scoring framework (physical, financial, situational, market). Real Estate Financial Planner™
2. Source deals via both on- and off-market channels (lender balance sheets, non-performing asset lists, motivated sellers).
3. Underwrite with enhanced risk buffers (repair contingencies, hold-period sensitivity, exit stress-tests).
4. Acquire, then execute repositioning (asset remediation, lease-up, operational ramp) or restructuring (work-out, recapitalisation) as appropriate. Venture
5. Stabilise the asset and implement value-creation plan, then execute exit or transition to long-term ownership.