"We've received significant interest from numerous potential co-investors attracted to our investment platform and the concept--a fund dedicated strictly to investing in B Notes," says Richard Katzenstein, managing director at MRC, who is managing the fund. MONY anticipates an initial fund closing by the end of the year with level yields targeted in the 10% to 12% range with a targeted maximum loan-to-value of 80% at the property level, Katzenstein notes.

Earlier this year, the MONY Group completed the final closing of its $300 million real estate mezzanine fund, co-managed by MONY Realty Partners Inc. through MRC and Transwestern Investment Co. LLC through an affiliate of its Asian Realty Partners I Institutional fund (A-S-L-A-N). At the time of closing, the fund had committed to more than $120 million of mezzanine investments and realized returns in excess of 15%.

MONY Realty Capital Inc. was formed in January 2002 and is a wholly owned subsidiary of the MONY Group. Based out of Littleton, CO, the entity was formerly known as MONY Real Estate Investment Management. The firm provides real estate asset management and investment services to the MONY Group and its other subsidiaries. In addition to investment origination, the group oversees a portfolio of more than $2 billion in real estate investments.