German investment firm Deutsche Finance Group is preparing insolvency proceedings for its US real estate fund after the complete failure of its sole asset: a 289,000-square-foot lab and office building in Somerville, Massachusetts, that attracted zero tenants. The fund raised approximately $58 million from 1,187 investors, mostly German retail participants. Bank OZK had provided a $246 million construction loan for the property. The fund’s net asset value collapsed by 59% in 2024, and investors are now expected to lose their entire equity, with the property heading toward a deed-in-lieu-of-foreclosure arrangement.
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