Dallas, TX-based Rainier Capital Management has launched a USD50m fund aimed at providing capital to real estate entities that are deleveraging their properties.
Dallas, TX-based Rainier Capital Management has launched a USD50m fund aimed at providing capital to real estate entities that are deleveraging their properties.
Provided in the form of mezzanine debt or preferred equity, the fund will capitalize the gap between maturing 70-80 per cent mortgage levels and replacement 50-65 per cent mortgage levels.
With more than USD500bn of commercial mortgage debt maturing through 2011, Rainier estimates the market for new mezzanine capital could be USD50bn or more.
Rainier co-founder Tim Nichols says: "Both property owners and lenders have immense pressure to deleverage their real estate assets and our capital will help owners secure refinancing or loan extensions for their projects by paying down principal, building reserves or funding the costs of property-stabilizing tenant and capital improvements."
The fund will invest in all property types but excludes raw land and development projects. It aims to capitalize positions of USD5m or less per property.
Rainier recently closed its third diversified real estate fund and 25th real estate private placement.
