Related Companies has completed its first two transactions through its $800 million joint venture with Highbridge Principal Strategies, a spokesperson told Private Debt Investor.
That venture, announced in June, is targeting opportunities in real estate debt, with a focus on gap financing for US transitional real estate projects. The joint venture with HPS targets investments in gateway cities including New York, Boston, Chicago, Washington DC, Los Angeles, San Francisco and Miami, as well as secondary markets in certain situations.
The firm originated a $100 million mezzanine loan for a sponsor-backed acquisition of four apartment New York City buildings. A separate, undisclosed non-bank lender also participated in that deal. In addition to the New York apartment buildings, Related has also originated a $34 million bridge loan for the acquisition of a commercial site in Santa Ana, California.
“Both of these transactions represent the distinct transitional opportunities that the credit platform was established to capitalise on,” managing director Brian Sedrish said in a statement. “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.”
Sedrish joined Related Companies in June to serve as the joint venture’s portfolio manager. The joint venture will consider investments that take the form of first lien mortgages, mezzanine loans and preferred equity positions.