Related Companies today announced that it has closed on two debt investments in New York City and Vail, Colorado as part of Related Fund Management’s credit platform. Related Fund Management, along with its partners, originated a $60 million bridge loan to refinance and fund pre-development for a planned approximately 400-key hotel in Manhattan’s North Chelsea district near Hudson Yards.
The sponsor has a well-established track record for developing and operating branded hotel properties in the New York City market. Related Fund Management also recently originated a $90 million construction loan together with an active, Midwest-based bank for the ground up development of an 80-unit luxury condominium project in Vail, Colorado. When completed, the project will be the first newly constructed condominium project in Vail in more than 7 years.
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 Related’s credit platform was established to capitalize on. We will continue to look for investments that exploit the significant financing gaps in the residential and commercial real estate market nationwide and provide creative financial solutions to sponsors.”
Related Fund Management’s real estate credit 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 infill land deals. The platform has already invested nearly $300 million. 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.
About Related Companies: 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, São Paolo and Shanghai and boasts a team of approximately 2,500 professionals. The Company’s existing portfolio of real estate assets, valued at over $20 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 28-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: opportunistic real estate investments, origination and acquisition of debt, and multi-family housing opportunities.
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