• Eightfold is a long-term, well-established participant in the CMBS B-piece space and has deep relationships with issuers and loan originators.

    As a CMBS specialist, Eightfold purchases new-issue B pieces as well as distressed securities in the secondary market. Since its inception, Eightfold has underwritten and invested in B pieces of CMBS pools with an underlying face amount of more than $79 billion in mortgage loans and deployed more than $2 billion in capital. Eightfold employs a rigorous approach to investing, as outlined below:

    Typical Investment Process - New Issue High-Yield CMBS

    Deal Selection
    • Strong relationships with CMBS issuers
    • Negotiated transactions
    • Limited number of buyers for below investment grade CMBS
    Due Diligence
    • Employ a "ground up" approach
    • Review each asset utilizing localized real estate knowledge
    • Site inspect each aspect and review competitive assets in its submarket
    • Prepare cash flow forecast for every asset
    • Assess viability of cash flow to meet debt service and terminal value to retire principal
    • Ability to underwrite large portfolios effectively
    Protect Downside
    • Remove loans with outsized loss risk
    • Stress default scenarios to test yield
    • Credit culture focuses on return of principal
    • Invest in new issue CMBS where Eightfold can act as controlling class representative
    • Principals have been at the forefront of special servicing since 1993
    • Ability to direct workout to maximize recoveries on defaulted loans
    Strategic Relationships
    • Special Servicers
    • Property Owners
    • Brokers
    The investment process entails a great deal of complexity, which limits competition and fosters an inefficient pricing environment

Eightfold Real Estate Capital, L.P.