From Debt to Deed — Where Real Estate Fits Into Our Strategy

428 Capital is, and remains, a distressed mortgage debt fund. We are not a real estate fund. But real estate is an unavoidable part of how our strategy resolves.

When we acquire a non-performing loan, the end state isn't always a cash settlement. Sometimes the borrower doesn't cure, doesn't sell, and the legal process runs its full course to foreclosure and title transfer. At that point, the collateral — the property itself — becomes ours to dispose of.

That's not a detour from the strategy. It's the strategy working as designed. And it's often where some of the more attractive economics show up: real estate acquired through a distressed-debt process carries a very different cost basis than real estate acquired on the open market, because the entry point was the defaulted loan, not a listing price.

We treat these situations the same way we treat every other stage of resolution — in-house, through our specialist partner, without outside brokers taking a cut of the upside. Whether a deal resolves as a cash payoff, a discounted settlement, or a property we take to sale, the underlying discipline is the same: know the collateral, know the legal path, and control execution end to end.

Real estate, for us, is not a separate business line. It's what distressed debt looks like when it fully plays out.