The Best Ever CRE Show JF 4048: Capital Calls, Distressed Assets and LP Decision-Making ft. Jack Mullen
Oct 4, 2025
Jack Mullen, Founder and Managing Director of Summer Street Advisors, shares his wealth of knowledge from banking and real estate. He dives deep into the nuanced world of capital calls and distressed assets, advising how LPs should assess reinvestment decisions. Jack emphasizes the emotional side of investing and the importance of professionalism in deal structures. He offers strategies for operators looking to scale towards institutional capital while breaking down the challenges posed by CRE CLO collapses and distressed asset acquisition. A must-listen for serious investors!
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Chapters
Transcript
Episode notes
Reevaluate Capital Calls As New Investments
- Treat a capital call as a new investment decision and not a continuation of past choices.
- Evaluate whether additional capital truly fixes operational flaws or just pours money into a sunk-cost hole.
Execution Trumps Capital Markets
- Execution now matters more than capital markets after years of cap-rate driven returns.
- Operators who can't execute renovations, control costs, or prove rent lift will underperform despite cheap capital history.
Distress Creates Operator Opportunities
- Distressed owner situations create opportunities for capable buyers and capital partners.
- Banks prefer partners who can operate assets because lenders are not expert operators.