At Ladder, CEO Brian Harris welcomes “the endorsement of our team and business model by one of the premier global real estate firms in the country. We look forward to partnering with Related, and feel confident that Related's expertise in the commercial real estate funds management business will prove helpful to our efforts in expanding Ladder's asset management and institutional co-investment businesses.”

Separately, Ladder announced on Monday that Marc Waldman has joined the company as a managing director in originations. Waldman joins Ladder from Deutsche Bank, where he had served as a managing director since 2013 and was responsible for over $6 billion in commercial real estate loan originations for both securitization and balance sheet execution.

NEW YORK CITY—Related Cos. has taken a stake in finance REIT Ladder Capital Corp., acquiring $80 million of Ladder stock from certain pre-IPO shareholders, the two companies said Tuesday. In connection with Related's strategic investment, Ladder has granted Related a right of first offer with respect to certain horizontal risk retention investments in which Ladder intends to retain an interest.

The investment by Related Real Estate Fund II, an opportunity fund with equity commitments of over $1 billion, also gives Related a seat on Ladder's board. Related EVP Richard O'Toole will join the Ladder board, replacing Jonathan Bilzin, managing director of TowerBrook Capital Partners, one of the pre-IPO shareholders from whom the Related fund bought the REIT's stock. “TowerBrook continues to remain a large shareholder in the company and we look forward to watching the team and the company enjoy continued success,” Bilzin says.

“Ladder's strong and seasoned management team operates a disciplined and differentiated mortgage-focused lending platform and we believe the company is undervalued by the public marketplace,” says Justin Metz, managing principal of Related Fund Management. “The ability to acquire a significant stake, as well as join the board, makes this investment an ideal fit for Related Fund Management and we look forward to a long-term partnership with Ladder.”

Related Cos. CEO Jeff Blau notes that the REIT's core earnings “have been positive each quarter since their inception and they have never had a credit loss”—a point also made in a Seeking Alpha profile of Ladder this past December. “We saw a strategic investment opportunity because we believe that the company's reported depreciated book value is a conservative representation of Ladder's actual value.”

At Ladder, CEO Brian Harris welcomes “the endorsement of our team and business model by one of the premier global real estate firms in the country. We look forward to partnering with Related, and feel confident that Related's expertise in the commercial real estate funds management business will prove helpful to our efforts in expanding Ladder's asset management and institutional co-investment businesses.”

Separately, Ladder announced on Monday that Marc Waldman has joined the company as a managing director in originations. Waldman joins Ladder from Deutsche Bank, where he had served as a managing director since 2013 and was responsible for over $6 billion in commercial real estate loan originations for both securitization and balance sheet execution.