Related Companies 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 USD100m 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 neighbourhoods 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 USD34m 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, says: “Both of these transactions represent the distinct transitional opportunities that the credit platform was established to capitalise on. Utilising 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.”