North America rising in real estate debt

Investment opportunities for real estate debt in the US appear to remain strong.

Real estate debt fundraising by region – where a firm plans to deploy capital rather than where the vehicle’s investors are – has fluctuated over the past four years, but one constant has been the rise of North America, according to PDI data.

Real estate made up slightly more than one-in-five dollars raised in 2014 and risen to almost one-in-two dollars collected in 2017, when it also made up a plurality of the capital raised. Fundraising across other regions has fluctuated, with each geographic area posting a strong year and then a muted year the next.

Though the North America-focused funds collected only 30 percent of the capital through the first six months of the year, a substantial amount, some $23.24 billion, is being sought for real estate debt that will invest mainly in the region. Several of the largest include Almanac Realty Securities VIII, Bridge Debt Strategies Fund III and Kayne Anderson Real Estate Debt III is seeking $1.5 billion.