KKR Announces First Debt Investment by KKR Real Estate Select Trust | Business
NEW YORK – (BUSINESS WIRE) – Aug. August 2021–
KKR, a leading global investment firm, announced today that KKR Real Estate Select Trust Inc. (“KREST”) has granted Crescent Heights, a leading urban real estate company, a mezzanine loan to refinance NEMA Chicago, an 800-unit luxury residential building in the heart of Chicago’s South Loop. This is KKR’s first debt investment through KREST, a continuously offered, registered closed-end fund that provides access to income-driven private real estate investments.
Built in 2019, NEMA Chicago is the tallest multi-family residential tower with uninterrupted views of Grant Park, Lake Michigan, and the Chicago skyline, as well as convenient access to downtown Chicago work centers and nearby universities. The 76-story property features 71,000 square feet of state-of-the-art amenities and finishes, including indoor and outdoor pools, extensive fitness facilities, meeting rooms, and a diverse mix of units.
“We are very excited to build on our longstanding relationship with Crescent Heights and participate in the refinancing of this premier property as it moves into the next phase of its business plan,” said Matt Salem, KKR Partner and Head of Real Estate Credit. “NEMA Chicago offers a luxury living and working experience that is in high demand and we believe the property is well positioned for further growth and outperformance.”
“KKR has been a trusted credit partner for NEMA Chicago and several stages in its life cycle. We thank the entire KKR team for their capital flexibility, ”said Casey Klein, general manager of Crescent Heights.
In addition to equity investments in stabilized real estate and first-class single-tenant real estate, real estate debt is one of KREST’s three main investment strategies. KREST targets private debt opportunities including real estate loans, preferred equity or commercial mortgage backed securities (“CMBS”) with a focus on attractive returns supported by underlying properties with a consistent and defensive cash flow.
“KREST’s first investment in a mezzanine loan is representative of the real estate loan component of the KREST strategy: attractive returns, backed by strong sponsorship and a world-class asset in a top market,” said Billy Butcher, KREST Chief Executive Officer and Chief Operating Officer of KKR Global Real Estate. “We are excited to add and further diversify our portfolio with NEMA Chicago, which has been facilitated by the close relationship between Crescent Heights and our credit team.”
Since launching a dedicated real estate platform in 2011, KKR has grown real estate assets under management in the US, Europe and Asia to around $ 32 billion as of June 30, 2021. KKR’s global real estate team consists of approximately 130 dedicated investment professionals from both the equity and credit businesses in twelve offices and nine countries.
About KREST
KKR Real Estate Select Trust Inc. (“KREST”) is a continuously offered, registered closed-end fund that thematically invests in high-quality, stabilized, income-oriented commercial real estate equity and debt. The Fund is open to all investors with daily subscriptions and its primary investment objective is to achieve attractive ongoing income with a secondary objective of long-term capital growth. Managed by KKR Registered Advisor LLC, a subsidiary of KKR & Co. Inc., KREST leverages the experience and reach of KKR’s global real estate team, as well as the resources available through the KKR platform. You can find more information about KREST on the website www.krest.reit.
About KKR
KKR is a leading global investment company providing alternative asset management, capital markets and insurance solutions. KKR aims to generate attractive investment returns by adopting a patient and disciplined investment approach, employing world class people, and supporting the growth of its portfolio companies and communities. KKR sponsors mutual funds that invest in private equity, credit and real assets, and has strategic partners who manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the leadership of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For more information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and Twitter @ KKR — Co.
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SOURCE: KKR
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PUB: 08/26/2021 4:30 p.m. / DISC: 08/26/2021 4:32 p.m.
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