Shlomo Chopp On Finding Distressed CRE Opportunities
Restructuring veteran Shlomo Chopp, whose commercial real estate career spans more than 20 years through multiple market downturns, has launched a new asset management firm targeting investments in undervalued properties through derivatives.
Chopp, who forged his CRE career in proptech two decades ago, formed Terra Strategies this spring with the aim of capitalizing on a disconnect between real estate bond and equity valuations — the goal being to find quality assets at significant discounts often bypassed by market participants. This marks the latest CRE venture for Chopp, who previously founded distressed debt consulting firm Case Property Services in 2010 and in 2017 developed the retailOS platform.
Terra Strategies was formed at a time when more than $1 trillion of CRE debt is projected to mature by 2025, with borrowers seeking refinancing, recapitalization or exit options in a higher interest rate environment while lenders look to offload certain assets at steep discounts. The firm is focused on all aspects of CRE financing, including funding property operations, loan financing and debt restructurings.
Chopp spoke with Commercial Observer about his motivation to launch Terra Strategies, how the proptech industry changed over the last 20 years, his outlook on the office sector, what geographic markets he is avoiding, and how volume is shaping up for the rest of 2023.