National multi-strategy real estate operator Stablewood is partnering with alternative asset management firm GCM Grosvenor to form a joint venture that will invest in single-tenant net lease, but not primarily by buying and leasing properties.

Instead, the two are focused on a shortcoming in retail CRE — construction financing. The venture will provide construction financing to experienced developers of shovel-ready, single-tenant-net-lease retail projects secured by long-term leases with creditworthy tenants, according to the companies. Most notably,  the venture will also offer developers an optional forward purchase.

One of the difficulties CRE faces is tight access to financing. Banks hold about 60% of CRE debt on their balance sheets. They have faced concerns about the safety of deposits given questionable valuations of assets. That includes the plunging worth of bonds bought at low yields when the Federal Reserve pushed interest rates up or the soundness of CRE loans because of their likely reduced ability to gain refinancing. As a result, many banks have pulled back on the amount of CRE financing their willing to offer and have tightened underwriting requirements.