Timbercreek raising debut US real estate debt fund

The Canadian property investment firm wants to make bridge loans of up to $35m.

Timbercreek Asset Management is seeking up to $1 billion for its US real estate debt business, the Toronto-based firm said in a statement.

It will be investing out of the Timbercreek US Debt Fund and will make loans of $10 million-$35 million for transitional properties across the US. The firm set a goal of originating $1 billion of loans for the strategy – an effort spearheaded by Patrick Maroney, whom Timbercreek hired as executive director of originations for the US this week.

Maroney will report to Bradley Trotter, the firm’s global head of debt. Trotter could not be reached for additional comment.

One recent US deal is a $4.9 million three-year mezzanine loan backing the acquisition of a 176-unit multi-residential property in Charlotte, North Carolina. In Canada, the firm provided a C$6 million ($4.6 million; €4.1 million) 18-month bridge loan.

Maroney, formerly of Annaly Capital Management – where he sourced, structured and closed loans for office and multi-family properties – joins Julie Neault, who is Timbercreek’s executive director of origination in Canada.

The firm established a dedicated debt origination arm last November, when it appointed Trotter to his current position, according to a statement at the time.

As real estate debt has grown, North America has been the biggest beneficiary of the trend. Fundraising for the strategy 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.