CRE Principal Investing & Merchant Bank

Propulsion Real Estate Capital

Built by operators. Run as a merchant bank. We originate middle-market CRE credit for institutional capital — and compound beneath the surface across four interconnected verticals.

Raise$3.5MSeed
Structure8% Pref20% → 10% after 2×
Payback~33 moEarly Year 3
5-yr MOIC2.64×$9.2M / $3.5M
5-yr IRR~35%Annual cash flow
01 — The Opportunity

The capital exists. Propulsion is built to put it to work.

Banks have permanently retrenched from non-agency CRE credit. Institutional allocators have raised record private-credit pools — and have not built the origination teams to deploy them. Propulsion sits between the two.

$0
CRE Debt Maturities
2024–2027 refinancing wave
0
Value Decline
15–30% off 2021 peaks across asset classes
$25–100 M
Target Loan Size
The structural middle-market gap

The current vintage is one of the best entry points in fifteen years — and the non-agency middle market has no scaled correspondent.

The Timing — Three Converging Conditions
02 — The Firm

Four verticals, one relationship.

Asset-light by design — fees without bearing principal credit risk. Each engagement is an entry point into more of the same deal across the capital stack.

Vertical 01

CRE Lending

Asset-light correspondent origination, underwriting, and servicing for institutional balance sheets.

50–100 bps origination · 10–25 bps servicing strip
Vertical 02

Debt Advisory & IB

Debt placement, CMBS, restructuring advisory, and distressed-debt execution. Fee-only revenue.

50–150 bps placement & advisory fees
Vertical 03

Equity & Advisory

Sponsor advisory, JV equity placement, capital-stack structuring, and GP recapitalization.

50–150 bps advisory fees · selective co-invest
Vertical 04

Principal Investing

GP-level co-investment in special-situations JV transactions — promote economics single-product shops can't reach.

300–500 bps over deal IRR · selective GP co-invest
03 — Both Sides of the Table

Debt, equity, operations — we've done all three.

Most CRE lenders have only lent. The Propulsion principals have been debt originators, equity investors, operating partners — and borrowers. We underwrite from the asset up.

David Schwartz
Operations → Equity → Lending
Lending
Natixis — MD, Head of Portfolio / Balance-Sheet Lending; $7.4B originated since 2012. Prior: AllianceBernstein, Bank of America.
Equity
Equity-side roles structuring and executing CRE transactions across the capital stack.
Operations
Early-career operating roles in CRE, including Vornado. Principal of Assembly, the value-add operating partner.
Michael Odell
Lending → Equity → Operations
Operations
Olshan Properties — Exec MD, Investments & Capital Markets; led $2.8B of CRE financings from the borrower side.
Equity
Barclays Capital — restructured a $1B distressed CRE portfolio across mortgage, sub-debt, pref equity, and REO.
Lending
Gramercy Capital (VP, Originations) and CIBC — ~$1B+ originated. Cornell; NYU Stern MBA.
04 — The Gap

Our lane, wide open.

The CRE credit landscape by loan size and product type. The lower-right quadrant — $25–100M, non-commodity, structured — has no scaled correspondent.

Larger · Commodity

Agency

Walker & Dunlop, Berkadia, Greystone, Northmarq.

$80–144B servicing books
Larger · Structured

Large-Cap Direct Lending

Blackstone, Ares, KKR, Apollo, Sixth Street.

$500B+ raised in private credit
Smaller · Commodity

Banks & LifeCos (retreating)

Regional / community banks, LifeCos under Basel III and tighter supervision.

Non-agency CRE lending down 40%+
Smaller · Structured

Propulsion Real Estate Capital

$25–100M non-agency. Non-commodity, structured.

Franchise not yet built at scale
← Commodity productSpecialty / structured →
05 — Economics

Four revenue streams, no principal risk.

Each stream is fee-based or promote-based. None requires Propulsion to carry principal credit risk on the underlying loans.

01

Origination

One-time at close
50–100 bps

Paid at loan close. $1.75M Y1 → $6.3M Y3.

02

Servicing Strip

Recurring annual
10–25 bps

On outstanding balances, for life of loan — the compounding asset. $250K Y1 → $1.7M Y3.

03

Advisory & IB

Mandate-driven
50–150 bps

On placed capital. Capital-light. $1.5M Y1 → $4.5M Y3.

04

JV Promote

Enhanced economics
300–500 bps

Above deal IRR on special-sits JVs. 25% to Propulsion. $0 Y1 → $1.5M Y3.

06 — Seed Investor Returns

How and when capital is repaid.

8% preferred return paid first. Remaining NOI split 20% to investor / 80% to founders until 2× invested capital, then 10% / 90% permanently. No terminal value applied.

0
5-yr MOIC
$9.2M total distributions on $3.5M invested
0
5-yr IRR
Annual cash-flow IRR · 8% pref + 20→10% equity
0
Payback
Early Year 3 · seed recovered from operations

Worst case (zero revenue): ~24 months of runway. Capital-partner origination fees begin Q2 Year 1.

07 — Track Record

A proven team across debt, equity & operations.

$0
CRE Credit Originated
Schwartz ($7.4B) + Odell ($1.7B+) combined founding-team origination.
$0
CRE Financings Led
Odell at Olshan — led $2.8B from the borrower seat, across banks, LifeCos, CMBS, and private lenders.
0
Combined Experience
Debt origination · equity investing · operations · workouts · capital markets.
08 — The Ask

$3.5M seed.
24 months of runway.

Holding-company seed capital funds operations through Month 24. Year 1 covers pre-revenue operations; capital-partner flow begins Q2 Year 1 and offsets the Year 2 draw.

Instrument8% Preferred + Equity
Participation20% → 10% after 2×
Payback~33 months
5-yr MOIC2.64×
5-yr IRR~35%
Year 5 NOI target$18.7M
Investor Inquiry
Cycle by cycle.
Built by operators · Run as a merchant bank
Request the full presentation →
Michael Odell
modell@propulsion-rec.com
Principal · Originations & Operations