Underperforming CRE Loan Fund Established

Younan Properties Inc., Los Angeles, has announced the formation of a commercial debt group and opportunity fund to acquire underperforming commercial loans backed by commercial real estate. The company said the new unit, the Younan Financial Group, will invest up to $200 million in underperforming loans and distressed office properties around the country in transactions ranging from $5 million to $50 million. The fund will purchase mispriced mezzanine loans, "B notes," whole loans, and nonperforming first mortgages backed by commercial real estate. "The current instability in the debt markets and the inability of lenders to hold an underperforming loan while the property is stabilized provides an excellent opportunity for our company to acquire debt at discounted prices for key assets in major markets," said Zaya S. Younan, chairman and chief executive of Younan Properties. The company can be found online at http://www.younanproperties.com.