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Mack Real Estate Credit Strategies Enhances Senior Lending Capabilities With Unlevered Loan Program
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Rhea-AI Summary
Mack Real Estate Credit Strategies has shifted its focus to senior debt solutions, aiming to provide low-leverage first mortgage loans and A-notes for commercial real estate projects across the U.S. This strategic move comes amid a backdrop of increased demand for real estate credit and reduced supply from regional banks. MRECS recently issued a $52.5 million pre-development loan for a mixed-use project in Miami and is evaluating a robust pipeline of opportunities. Since 2015, MRECS has originated over $20 billion in commercial real estate loans, positioning itself as a significant player in transitional real estate lending. The firm believes current market dynamics will enhance the demand for flexible and well-capitalized lenders as borrowers seek capital solutions.
Positive
MRECS is focusing on senior debt solutions, addressing unmet demand in the market.
The company recently provided a $52.5 million pre-development loan for a Miami project.
MRECS has originated over $20 billion in commercial real estate loans since 2015, highlighting its credibility.
Negative
None.
NEW YORK--(BUSINESS WIRE)--
Mack Real Estate Credit Strategies, L.P. (MRECS) announced it has deepened its strategic focus on borrowers seeking senior debt solutions, with plans to originate low leverage first mortgage loans and A-notes for other alternative lenders on an unlevered basis for commercial real estate projects across the United States. MRECS has zeroed in on the opportunity to provide senior debt capital for transitional properties in key growth markets because of continued borrower demand and reduced supply of senior loans from regional banks.
“We have been focused on this opportunity for some time, and in our view, recent regional bank turmoil is going to intensify unmet demand for real estate credit across the risk spectrum, and especially at the senior-most level where regional banks have historically participated,” said Kevin Cullinan, the firm’s Co-Head of Credit Strategies and Head of Originations. He further observed, “We think that current market dynamics create an attractive opportunity set for flexible, creative, well-capitalized and fast-moving lenders across refinancings, acquisitions and new development projects.”
Priyanka Garg, also a Co-Head of Credit Strategies and the Head of Portfolio and Asset Management said that the new strategic focus is a natural evolution of the MRECS credit platform, complementing its existing high-yield, mezzanine and leveraged lending activities. “The key is being able to provide capital solutions to borrowers while seeking to eliminate capital markets or syndication risk,” said Ms. Garg, adding that, “In these volatile markets, we believe this is a compelling value proposition for borrowers.”
In connection with this new business focus, MRECS recently provided a $52.5 million pre-development loan for a mixed-use project in Miami, and continues to analyze a robust pipeline of opportunities to serve borrowers in this space.
MRECS is the real estate lending business affiliated with Mack Real Estate Group (MREG). MRECS has established itself as a key player in transitional real estate lending by originating or co-originating more than $20 billion of commercial real estate loans across investment strategies since 2015.
About Mack Real Estate Group Mack Real Estate Group, LLC (MREG) is an institutional real estate investment firm with roots in several Mack family real estate businesses, dating back to the 1960s. Today, MREG’s equity, credit and property management businesses employ nearly 300 people, with 6 offices across the US including New York, Los Angeles, Seattle, Phoenix, Miami and Raleigh. MREG’s equity business specializes in the acquisition, development and management of multifamily and industrial properties located in gateway and high-growth markets. Its recently created portfolio, excluding legacy Mack family assets, represents approximately 9,000 multifamily units and 6 million square feet of industrial space, including development and pre-development pipeline. The firm’s affiliated credit business, Mack Real Estate Credit Strategies, L.P. (MRECS), has originated or co-originated more than $20 billion of loans since 2015 across multiple lending strategies. An MRECS affiliate manages one of the largest publicly traded commercial mortgage REITs, Claros Mortgage Trust, Inc. (NYSE: CMTG). For more information, please visit mackregroup.com.
