Commercial Opportunity Fund I

Location: Las Vegas, Nevada

A distressed debt fund designed to capitalize on the current commercial real estate market dislocation. The Opportunity: Why Distressed CRE Debt, Why Now? We are at a unique moment in the commercial real estate (CRE) market. Over the next two years, an estimated $1.62 trillion in CRE debt is set to mature. Much of this debt was issued when interest rates were significantly lower. With today's higher interest rates, which often exceed 6%, and increased operating expenses, many property owners cannot meet the underwriting requirements to refinance their loans. This has led to a surge in distressed assets, which topped $200 billion in the second quarter of 2025 alone. Banks and other lenders are facing regulatory pressure to offload these troubled and non-performing loans (NPLs) from their balance sheets. This has created a substantial and growing pipeline of NPLs that can be acquired at a significant discount to the value of the underlying real estate. The Commercial Opportunity Fund I was created to capitalize on this specific market opportunity. Our Strategy: Acquire, Liquidate, Repeat The Commercial Opportunity Fund I is a perpetual fund focused on acquiring NPLs secured by quality commercial real estate assets, liquidating them in short cycles, and generating returns for our investors. Our disciplined process is built on a continuous cycle of execution: Sourcing: We leverage our established relationships with bank and non-bank lenders to access a consistent flow of NPL opportunities. Acquisition: We target loans at a significant discount, aiming for an acquisition cost of under 65% of the collateral's current market value. Our target collateral includes retail, medical, office, industrial, restaurant, and multifamily properties in lender-friendly states. Legal Action & Resolution: We initiate deed-in-lieu negotiations and foreclosure proceedings in parallel to accelerate resolution. Liquidation: We have four primary pathways to resolve each asset, with a typical investment cycle of just 2 to 8 months. Borrower Payoff Deed-in-Lieu and Resale Foreclosure Auction Sale REO via Trustee Deed and Resale Capital Redeployment: As an open-ended fund, proceeds are continuously reinvested into new NPL assets, allowing us to adapt to market conditions and compound returns. This short-duration investment focus minimizes our exposure to market volatility and interest rate shocks. The Issuer The Commercial Opportunity Fund I LLC is managed by Fund Management Series of Sophinvest LLC. Founded in 2015, Sophinvest LLC has deep experience in managing distressed residential and commercial properties across several southwestern states. The team’s expertise in underwriting, project oversight, and lender relationships forms the foundation of this fund. Key Investment Terms Offering Type: 506(c) for Accredited Investors Only Minimum Investment: $100,000 Fund Term: Perpetual Management Fee: No management fee, acquisition fee or disposition fee for founder's membership class (initial $10 million raise) Target Fund Performance: 40% IRR fund target, 23% net investor IRR after profit split Distributions: Profits are reinvested by default, though investors can elect to receive distributions to cover tax liabilities or as a full payout. Redemptions: Available quarterly at NAV following an initial one-year lock-up period, subject to available liquidity. Leverage: No leverage is used in the fund.