New $900M Fund Targets Transitional Real Estate
A new fund has entered the fray offering adjustable rate first mortgage loans secured for US commercial real estate in transition
AllianceBernstein announced that it has closed the first close of its fourth U.S. commercial real estate debt fund, which has secured nearly $ 900 million in capital commitments. Equitable will be the main investor.
CRED IV, which is part of AllianceBernstein’s transition strategy for real estate loans, will hold the loans on a non-leveraged basis. Since its launch in 2013, the company’s CRED fund platform has raised more than 100 loans and raised nearly $ 7 billion in capital commitments from institutional investors worldwide.
“Our CRED strategy offers strong credit diversification and an attractive return premium compared to public loans. We are confident that these attributes will continue to generate investor interest as we look to future Fund IV closings, ”said Matthew Bass, Head of Private Alternatives at AllianceBernstein, in prepared remarks.
CRE-related fundraisers have been running swiftly for both debt and property purchases.
Earlier this week, real estate development and investment firm Hillpointe closed a $ 110 million fund Development of class A apartments for tenants by labor.
The company has exceeded its $ 100 million goal and plans to develop quality housing for workers who earn between 60% and 120% of the area’s median income, the company said in a statement. The fund will provide capital for the company’s next eight residential projects, representing approximately 2,400 units in the southeastern United States.
Multifamily is also a destination for Waterton in Chicago. In mid-February, the company closed Waterton Residential Property Venture XIV with equity commitments of $ 1.5 billion. This makes it one of the largest multi-family funds in the USA. According to the company, Waterton has raised capital from a diverse group of global institutional investors. Including debt, the fund can acquire $ 4 billion in more than 50 apartment buildings.
At the end of February, Electra America, a platform specializing in the multi-family and residential sector, and AKA, a leading provider of luxury hotel residences, Partnership to found the Electra America Hospitality Group. The fund is in the process of raising $ 500 million in capital from investors to buy distressed independent hotels in key gateway markets.
AllianceBernstein has also been actively collecting donations. In the fourth quarter of 2020, a European platform for commercial real estate debt was closed, which was launched with a capital of almost 1.5 billion euros. The ECRED platform, led by industry veteran Clark Coffee, is expected to announce its first lending since joining AB in the coming weeks.