For his next act, Bank OZK’s former vice chairman Dan Thomas is returning to his roots.
Before his career in banking, Thomas started out as a real estate developer and investor. Now he’s launching Forest Way Capital after securing $200 million in initial commitments for the investment platform. Los Angeles-based George Smith Partners facilitated the capital raise.
Thomas is starting out with a clean slate. His family office sold all of its real estate assets as of 2022 and is completely liquid.
“We truly have no legacy problems,” he said.
Forest Way, which is based in Dallas, will explore deals in all asset classes around the country, but will likely focus on the Sun Belt, due to its job and population growth, Thomas said.
It plans to hold assets for between three and five years.
The firm is currently considering a mixed-use redevelopment play, which includes hospitality, retail and condos. Thomas is also looking into a deal where he would assist in a residential development project.
Forest Way will use the $200 million initial commitment for note acquisitions, stretch-senior and mezzanine loans and preferred equity investments.
The capital raise is one of three sources of capital for Forest Way. Thomas also has between $50 and $60 million of family office money and is working on a $730 million construction loan with an institutional lender.
The economic climate has pushed Thomas to move slowly, he said.
Between high interest rates, inflated valuations, distress in the office market and the softening of single-family homebuilding, the majority of deals he’s looked at in the last two years haven’t penciled, he said.
After seeing debt funds and banks that “didn’t show a lot of discipline” in the last cycle, he’s looking at everything and is committed to being patient for the right opportunities.
“What we have is speed, certainty and I think my reputation will show we can do very complex deals,” he said.
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