Distressed Debt

Carderock invests in the acquisition of non-performing real estate secured debt.  Investment criteria for distressed debt investments are set forth below.

Target Areas: Washington, DC Metro area, Central Virginia, Greater Baltimore area and South/Central Pennsylvania.

Investment

Amount: $500,000 to $5,000,000 of invested capital in any one transaction. 

Priority: First trust position preferred but will considered subordinated and mezz debt opportunities.

Collateral: Commercial income producing properties, residential land development or homebuilding projects, residential land and partnership interests in entities owning the aforementioned type of assets

Bankruptcy: Debt to borrowers that have filed for bankruptcy protection or which are under receivership will be considered.

Debtor in Possession Financing

Carderock provides debtor in possession (DIP) financing in Chapter 11 Bankruptcy Proceedings where it receives a priority interest.  Debt terms will depend on the individual circumstance. 

In providing DIP financing for borrowers undergoing reorganization Carderock seeks to fill a niche where such financing below $5,000,000 is not well served by institutional financing sources such as banks and commercial finance companies.