Dalton, Beach Front offer new joint venture distressed mortgage restructuring strategy

By Caroline Salls

Pittsburgh, Oct. 2 - Dalton Investments, LLC and Beach Front Property Management, Inc. are offering a new joint venture distressed mortgage strategy that will buy defaulted loans from mortgage servicing companies at significant discounts and restructure them, according to a Dalton news release.

"This new strategy will combine Dalton's expertise in distressed debt and Beach Front Property Management's experience in buying and restructuring troubled real estate assets," Dalton co-founder and chief executive officer Steven D. Persky said in the release.

"The sub-prime market is just beginning to unwind and we expect defaults and foreclosures to skyrocket over the next six to 12 months."

According to the release, the strategy will offer affordable monthly payments for homeowners and a residential mortgage- and real estate-backed investment vehicle for Dalton's investors.

The joint venture will be managed by Persky and Beach Front president Kyle Kazan.

"This strategy will build on our existing management platform and will only invest in mortgages after we have done a thorough analysis of their underlying assets," Kazan said in the release.

"There will be tremendous opportunities for buying loans at significant discounts and turning them into profitable investments while allowing homeowners to stay in their homes with more affordable monthly payments."

Dalton said the strategy will initially focus on buying mortgages in Southern California, Las Vegas and Phoenix, "markets where easy credit and investor speculation have led to the current bubble, despite excellent long-term prospects for real estate development."

Dalton is a Los Angeles-based investment management firm. Beach Front is a Long Beach, Calif., manager of homes and apartments in California.

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