Real estate investor Scott Sherman, who's seized opportunity during economic downturns, sees the chance to do it again during the current market uncertainty.
To that end, Sherman has launched Torose Equities, a Miami-based real estate investment firm that plans to target properties across the Southeast ranging from $10 million to more than $100 million. Torose Equities strategy is centered on upgrading and increasing the properties' values despite current concerns of a potential recession.
"There is no perfect time to launch a venture, if you are waiting for the perfect time in the market you are probably too late," Sherman said in an email. "With that said, I think there is a lot of opportunity on the horizon as we go through a repricing nationally as a result of escalating interest rates. We are excited to build out the new platform and capitalize on the current environment."
Sherman has done this before. In 2017, he opened Tricera Capital. In the five years he ran Tricera, Sherman led the acquisition of more than 30 properties that contained a total of 2.5 million square feet of space and had an aggregate value of approximately $700 million.
Tricera's high-profile transactions included its acquisition of the Palm Beach Post complex in West Palm Beach, Florida. In that 2019 deal, Tricera bought the property from Cox Media Group affiliate Palm Beach Newspapers for $24 million, according to CoStar data. Tricera upgraded the property and transformed it into The Press, a mixed-use development.
In April 2021 Tricera and Lndmrk Development acquired Cube Wynwood, an office complex in Miami for $28 million, according to CoStar. A San Francisco investor has contracted to acquire the property, which has an asking price of $77 million, based on CoStar.
Sherman said he sees similar opportunities for Torose to acquire properties and make them more valuable by repositioning them. “My plan is to continue to build on the same strategy and success I have established throughout my career," he said. "I pride myself on having earned the trust and respect of investors with this contrarian approach."
Ari Sasson and Aaron Kay, who worked with Sherman at Tricera, have joined Sherman at Torose. Sasson serves as Torose’s chief financial officer and Kay as its director of acquisitions.
The firm said it already has properties under contract in deals expected to close by year end.
Before starting Tricera and then Torose, Sherman spent six years in acquisitions at Thor Equities, an investment firm focused on urban retail and mixed-use properties in the U.S., Latin America and Europe.
Sherman said his new firm's name is significant to him on several levels.
"Toro is Spanish for Bull which I have always liked as a strong symbol," he said. "I had a painting of a bull in my office in NYC, and I am also a Taurus. I combined that with Rose which is my daughter's middle name to come up with Torose. Coincidentally, my son is obsessed with Pokemon and there is a character named Tauros, so he thinks I named my company after a Pokemon character…"