Propulsion Real Estate Capital

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.

DS

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.

MO

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

$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. Varies by funding source and product.

02

Servicing Strip

Recurring annual

10–25 bps

On outstanding balances, for the life of the loan — the compounding franchise asset.

03

Advisory & IB

Mandate-driven

50–150 bps

On placed capital. Capital-light — restructuring, placement, and capital-stack advisory.

04

JV Promote

Enhanced economics

300–500 bps

Above deal IRR on special-situations JVs. 25% to Propulsion, unavailable to single-product correspondents.

Origination fees are earned once. Servicing income persists for the life of every loan — power compounds beneath the surface.

06 — Track Record

A proven team across debt, equity & operations.

$0

CRE Credit Originated

Schwartz ($7.4B) + Odell ($1.7B+) combined founding-team origination.

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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.

Get in touch

Cycle by cycle.

Built by operators · Run as a merchant bank

Contact the team →

David Schwartz

dschwartz@propulsion-rec.com

Founder & Managing Partner

Michael Odell

modell@propulsion-rec.com

Principal · Originations & Operations