#United States #Seattle #Real Estate #Keelbase Capital

Keelbase Capital Launches in Seattle

New Investment Firm Targeting $105 Billion Opportunity
On July 16, 2025, Keelbase Capital, a new real estate investment firm based in Seattle, announced its official launch. The firm aims to capitalize on current market dislocations caused by systemic overleverage across various U.S. real estate sectors. This overleverage has emerged from a combination of declining asset values and the end of a period characterized by near-zero interest rates.

Strategic Focus and Financial Goals
Keelbase plans to allocate between $125 million and $250 million in private credit within its first three years. Additionally, the firm seeks to pursue $200 million to $300 million in joint venture acquisitions. Initially, the focus will be on the Seattle metro area, with future plans to expand into other markets exhibiting similar economic characteristics.

"We founded Keelbase Capital to meet the moment," shared Cooper Engst, one of the founding partners, who brings over two decades of experience in institutional capital markets and real estate development. He emphasizes the struggles property owners face today, as asset valuations remain significantly lower than their peaks, and traditional lenders provide inadequate refinancing options.

Investment Landscape
Between 2019 and 2022, the Seattle Metropolitan Statistical Area (MSA) saw the acquisition, refinancing, or development of more than 1,900 multifamily properties, totaling approximately $60 billion in value. When including retail, industrial, and office properties, the aggregate value surges to around $105 billion. As many of these properties are now facing overleveraging, Keelbase sees a ripe opportunity for investment.

"Seattle is one of the most dynamic real estate markets in the country, but it is also significantly affected by the ongoing reset in the market," said Paul Roeter, another co-founder of Keelbase Capital. He pointed out that values have decreased, and property owners are facing pressures from lenders. However, increased deal volume is shedding light on pricing, suggesting potential for recovery.

The current outlook indicates that Seattle’s market, which leads coastal gateway markets in GDP growth and net in-migration, will likely experience a substantial drop—up to 90%—in new construction starts. This situation may lead to increased pressure on rents and asset values in the medium term.

National Trends
The challenges in Seattle aren't isolated. With more than $3.5 trillion in commercial real estate loans set to mature across the U.S. in the next three years, many sponsors who relied on cheap debt during the prior boom are now exploring alternative financing options, including private lenders for restructuring.

Keelbase's Investment Strategies
Keelbase Capital's investment strategy consists of two main focuses:
1. Private Credit: Offering structured solutions, like preferred equity and mezzanine debt, targeted at high-quality, well-located assets.
2. Value-Add Acquisitions: Aiming to acquire properties at steep discounts from peak prices, prioritizing operational efficiency and potential for rental growth.
Engst reiterated that Keelbase is not chasing volume. Instead, they aim for high-quality assets that have capital difficulties in markets they are thoroughly familiar with.

Local Connections and Agility
The firm is known for leveraging deep local ties with brokers, lenders, and property owners to uncover investment opportunities. Engst and Roeter are highly involved at every step of the investment process, allowing them to recognize value that others may miss.
As Roeter notes, "In the last cycle, scale was rewarded. This time, creativity, agility, and conviction will drive success. That’s where Keelbase Capital comes into play."

For further details about Keelbase Capital, visit www.keelbase.com.

About Keelbase Capital

Keelbase Capital LLC specializes in private credit and value-add acquisitions and was founded by seasoned industry experts Cooper Engst and Paul Roeter. Together, they offer nearly 40 years of collective experience across various sectors of real estate, demonstrating a disciplined regional approach to capital investment and asset management.
For more inquiries, please contact Richard Kendall via email at [email protected]

This article is intended for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy any securities.