Management of related funds reached the final close of Related Real Estate Debt Fund LP (RDF), with capital commitments of $792 million, exceeding its target of $750 million.
The fund is a real estate lending vehicle that provides debt financing, structured in the form of full first mortgages, B notes, mezzanine loans and preferred shares secured by a diversified pool of real estate assets, including residential , office, industrial, hotel, commercial and specialized use. “The vehicle specializes in identifying opportunities to provide capital at different stages of the investment life cycle,” according to Related.
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RDF capitalized on strong market activity in 2021, having completed seven transactions by the end of the year totaling more than $247 million in equity. RDF created debt positions secured by multi-family, office, hotel, retail and mixed-use assets.
Brian Sedrish, managing director of Related Fund Management, said in a prepared statement that strong investor interest in RDF was largely attributable to its strong investment track record, expertise in creating unique off-market transactions and its ability to leverage 50 years of related history of development, construction and rehabilitation.
The Arizona State Pension System and Menora Mivtachim Holdings Ltd. were among the main investors in the fund.
EvercoreThe Real Estate Capital Advisory group of was the global capital advisor for the fundraising.
Among RDF’s deals to date was a slice of the $240 million financial package, nailed down last summer, for the first phase of The Alloy Block, a mixed-use development at 80-100 Flatbush in Brooklyn. . The project will encompass New York’s first all-electric residential tower, Kahlil Gibran International Academy High School and a public elementary school, all with immediate access to the Atlantic Terminal of the Long Island Railroad, a public transportation hub.
The 44-story residential tower will feature 396 market-priced apartments and 45 affordable units, as well as 30,000 square feet of retail space. In a future phase, a second tower will include housing, shops and offices, as well as a new cultural centre.
Goldman Sachs and funds managed by the real estate group of Management of Ares joins RDF in financing. Developers are a local entity Alloy development and the New York City Educational Building Fund.