Look Who’s Expanding Their CRE Finance Capacity
Greystone’s new senior debt opportunity fund has an investment capacity of $2.5 billion while KKR Real Estate’s senior loan originations grow 109%
KKR Real Estate’s Senior Loan Originations Grow 109%
NEW YORK CITY–KKR Real Estate Finance Trust’s total originations of senior loans for the last twelve months ended June 19, 2018 reached $2.1 billion, a 109% increase over the same period in 2017, according to the co-CEOs of the unit, Chris Lee and Matt Salem. Year-to-date, KREF has originated eight senior loans totaling $1.1 million, resulting in a $3 billion portfolio.
They revealed these numbers as part of an announcement that the company closed two floating-rate senior loan transactions totaling $378.7 million.
Last month KREF closed a $213.7 million floating-rate senior loan secured by a 474,000 square foot, class-B+ office building in Boston. The loan has a three-year initial term with two one-year extension options, carries a coupon of LIBOR+2.40% and has an appraised LTV of approximately 69%.
This month KREF closed a $165 million floating-rate senior loan secured by 974,000 square foot, class-B+ office buildings in Philadelphia. The loan has a two-year initial term with three one-year extension options, carries a coupon of LIBOR+2.45% and has an LTV of approximately 71%. The weighted average underwritten internal rate of return of these two loans is 10.6%.
Greystone’s New Debt Fund Has $2.5B Capacity
NEW YORK CITY–Greystone has closed its $750 million Greystone Senior Debt Opportunity Fund, which has an 8-year period and invests in debt financing across a range of commercial real estate properties. With leverage, the fund anticipates an investment capacity of $2.5 billion for loan products such as bridge and mezzanine financing for multifamily, healthcare, and other commercial properties.
“We are seeing incredible demand for flexible financing options for acquisitions of both stabilized and transitional properties, and this increased capacity enables us to help round out the increasingly complex capital stack for property investors,” said Mark R. Jarrell, head of Greystone’s Portfolio Lending group, in a prepared statement.