IIn 1991, Frank Crivello created two private trusts, Irrevocable Children’s Trust and Irrevocable Children’s Trust No.2 (the “Trusts”), for the benefit of his children, Joseph and Anthony Crivello. Later that year, through their majority interest in the First Berkshire Business Trust, the Trusts completed Wall Street’s first single-tenant retail property-backed securitized financing. That transaction, secured by 43 Kmart retail locations and warehouse stores, became a precursor for CMBS structures commonly used over the last twenty-five years.
In 1994, David Marks became trustee of the Trusts, and Phoenix Investors (“Phoenix”) was created as the management company of the Trusts’ investments.
Throughout the 1990’s, Phoenix focused on single-tenant arbitrage opportunities available across the country. To this end, Phoenix exploited various market inefficiencies that existed including information inefficiencies, differences in credit perceptions of unrated regional and national tenants, and innovative Wall Street financings, the combination of which produced above market returns.
From 2002 to the beginning of the Great Recession in 2007, our management team concluded that prevailing real estate opportunities and trends did not meet its disciplined risk/reward analysis. Phoenix suspended new acquisitions of commercial property and instead focused on improving its existing portfolio.