Tides Equities
What’s the latest on them? Haven’t seen them in the news in a while.
Did they finally stop getting sued/kinda turn the ship around or has most of their portfolio gone REO to lenders?
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Tides Equities has been facing significant challenges recently, as highlighted in various discussions and reports. Their business model, which relied heavily on acquiring, renovating, leasing, and quickly reselling properties, has been severely impacted by the current economic environment. Rising mortgage interest rates (the highest in 16 years) and a cooling housing market have made their "quick sales" strategy less feasible. In some cases, selling properties now would not generate enough proceeds to return the original investment.
There have been reports of financial stress, including missed debt service payments and properties underperforming. Some of their portfolio may have gone REO (Real Estate Owned) to lenders, as they struggle to navigate the market downturn. Additionally, there have been mentions of lawsuits and skepticism about their decision-making and transparency.
While there hasn't been much recent news about them turning things around, it seems they are working on strategies to address these challenges, such as gathering updated broker opinions of value and seeking additional capital to protect their assets. However, the overall sentiment in the industry appears to remain cautious about their future.
Sources: BREAKING TIDES EQUITY/AMC - EMAIL LETTER REVEALED, BREAKING TIDES EQUITY/AMC - EMAIL LETTER REVEALED, Tides Equities?
Tides Equities has been facing significant challenges recently, as highlighted in various discussions and reports. Their business model, which relied heavily on acquiring, renovating, leasing, and quickly reselling properties, has been severely impacted by the current economic environment. Rising mortgage interest rates (the highest in 16 years) and a cooling housing market have made their "quick sales" strategy less feasible. In some cases, selling properties now would not generate enough proceeds to return the original investment.
There have been reports of financial stress, including missed debt service payments and properties underperforming. Some of their portfolio may have gone REO (Real Estate Owned) to lenders, as they struggle to navigate the market downturn. Additionally, there have been mentions of lawsuits and skepticism about their decision-making and transparency.
While there hasn't been much recent news about them turning things around, it seems they are working on strategies to address these challenges, such as gathering updated property valuations and seeking additional capital to protect their assets. However, the overall sentiment in the industry appears to remain cautious about their future.
Sources: BREAKING TIDES EQUITY/AMC - EMAIL LETTER REVEALED, BREAKING TIDES EQUITY/AMC - EMAIL LETTER REVEALED, Tides Equities?
I know Berkshire Resi has take over control of a lot of C+ Tides assets and is basically fully managing them now. Tides Principals aren’t really involved anymore.
what are the principals doing now?
They’re probably out there working hard to raise round 2 and round 3 of pref equity. 20% of the amount raised will go towards interest rate caps set to expire soon, 40% will be used for interest carry during the holding period to offset negative cash flow, 30% will be reserved for asset management fees and acquisition fees.
Slightly kidding.
they are still trying to do deals, I saw their names on a package a couple of months ago where they were listed as the asset manager (not the primary sponsor). That was kind of weird
There are simply no vendors that would agree to do any business with properties associated with them.
The two principals are going seperate ways. I think they are spending 99% of their time doing legal work. Waving the white flag
any more intel on this?
Which part? The partnership split thing became semi-public back at NMHC (i.e., people were talking about it, but there wasn't necessarily an announcement made). On the legal work side, from what I've heard they're mostly through that for better or worse and are looking for new deals while they manage the rest of their portfolio with a skeleton crew.
Mostly the legal work and how they fared with the lawsuits. Curious if the settled their lawsuits with Starwood and other lenders who pursued them for default under personal guarantees on several deals
My understanding is that they settled most/all of the suits, no idea on what it cost them though. I'm sure they finagled to keep as much as they could, which was apparently enough for them to keep operating with the much reduced team that they have.
Yeah heard they are breaking up, no clue what they do now but they went full send at the exact wrong time. Happens every cycle and the ending is always anti-climatic
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