Related Companies today announced that it has closed on two mezzanine and bridge debt investments in New York City and Santa Ana, California as part of Related’s credit platform. Related, along with its partners, originated a $100 million mezzanine loan for the acquisition and condominium conversion of four apartment buildings containing 743 units in New York City.
The properties are located in the desirable and supply constrained neighborhoods of the Upper West Side, Midtown West and Gramercy Park and the investment represents the opportunity to quickly reposition the properties as condominiums at an attractive price point, delivering units in as early as 12 months. The sponsor had a well-established track record of delivering marquee residential product in the New York City market.
Related also recently originated a $34 million bridge loan for the acquisition of an 18-acre site in Santa Ana, California that currently contains cash-flowing commercial uses and can accommodate over 1,200 units of multifamily housing. The sponsor had history of entitling properties in the area.
Brian Sedrish, a managing director of Related Fund Management and portfolio manager for the firm’s credit platform, said, “Both of these transactions represent the distinct transitional opportunities that the credit platform was established to capitalize on. Utilizing our local on-the-ground diversified expertise, we were able to source these opportunities and quickly evaluate and execute on the deals. We will continue to look for investments that exploit the significant financing gaps in the residential and commercial real estate market nationwide and provide unique financial solutions to sponsors.”
Related’s real estate credit investment platform is investing capital in real estate debt, focusing on real estate projects in transition such as value add renovation, re-development, conversion and new construction as well as land deals. Target investments are being sourced across the United States and include distressed debt, high leverage mortgage loans, mezzanine loans and preferred equity positions in gateway cities including New York, Boston, Chicago, Washington D.C., Los Angeles, San Francisco and Miami and select secondary markets that demonstrate strong supply/demand imbalances.
Related Companies is one of the most prominent privately-owned real estate firms in the United States. Formed over 40 years ago, Related is a fully-integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisitions, management, finance, marketing and sales. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, San Francisco, South Florida, Abu Dhabi, Sao Paulo and Shanghai and boasts a team of approximately 2,000 professionals. The Company’s existing portfolio of real estate assets, valued at over $15 billion, is made up of best-in-class mixed-use, residential, retail, office and affordable properties in premier high-barrier-to-entry markets. Related has developed preeminent mixed-use projects such as Time Warner Center in New York and CityPlace in West Palm Beach and is currently developing the 26-acre Hudson Yards project on Manhattan’s west side. Related Fund Management is a Registered Investment Adviser staffed by seasoned professionals and currently manages approximately $3 billion of capital on behalf of sovereign wealth funds, pension plans, multi-managers, endowments and family offices across three areas: distressed real estate opportunities, origination and acquisition of debt, and multi-family housing opportunities.
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