Capital Trust Completes $845.5-Mil Mezz Fund

NEW YORK CITY-In what it says is the largest deal of its kind, Capital Trust Inc. on Tuesday announced the final closing of an $845.5-million real estate mezzanine fund. Co-sponsored by Citigroup Investments Inc, the fund expects to originate $2.5 billion in loans and investments over the next two years.

The fund will invest in all real estate markets, According to Ed Shugrue, CFO for Capital Trust, the manager of CT Mezzanine Partners II, LP. He notes, however, that like all Capital ventures, CT Mezzanine Partners II will focus on large deals. Mezzanine loans made by the fund primarily will be on properties that are priced at $100 million or higher and meet Capital’s basic lending criteria.

“At Capital Trust, our lending mandate is nationwide and encompasses all property types,” Shugrue says. “Our only limitations are size and cash flow. We tend to focus on properties of $100 million or more with cash flow and meaningful sponsor equity.”