New York, NY, October 4, 2012 – Infinity Urban Century, an investment affiliate of Infinity Real Estate, announced today that it has sold its interest in Daymark Realty Advisors to an entity owned by Sovereign Capital Management, Inc. Infinity acquired Daymark from Grubb & Ellis, in partnership with San-Diego Sovereign Capital, in August 2011, shortly before Grubb & Ellis filed for bankruptcy protection. Daymark is the largest asset manager of tenant-in-common (TIC) properties in the nation and manages a portfolio of commercial real estate properties valued at approximately $3 billion.
Sovereign Capital’s executive team took over the management of the company shortly after the acquisition, under the guidance of a board of directors. Infinity Urban Century provided the company with initial capital support, guidance on restructuring its operations, and strategic advice on its proposed portfolio recapitalization. These efforts led to the formation of two private investment vehicles that have begun closing on several TIC properties in immediate need of recapitalization. Infinity coordinated capital market originations and negotiations on behalf of Daymark, with the help of Brookfield Financial’s investment banking group.
Infinity’s exit after this initial turn-around period marks a new phase for the Company. Sovereign Capital will become the sole owner of Daymark and intends to consolidate the gains made in its first year of operation by pursuing further TIC portfolio consolidations. “We are very pleased with the conclusion of this transaction and the new stage it enables. Sovereign has been a great partner for our group, and we hope to capitalize more investment opportunities with them in the future” said Etienne Locoh, Infinity Urban Century’s managing partner.
