Morrison Street Capital’s Morrison Street Debt Opportunities Fund (MSDO) has reached its target with total equity commitments of USD200 million.
MSDO provides small-balance mezzanine capital, with investment balances generally ranging from USD2 million to USD10 million, to real estate market participants across a diversified set of property types in the top 100 MSAs nationwide.
MSDO’s investments are structured as either mezzanine debt, B-notes or preferred equity, tailored to meet the specific needs of each situation.
Morrison Street Capital formed MSDO to capitalise on the current opportunity in the debt capital markets, as well as to leverage its experience as debt and equity investors in the mid-market real estate sector. MSDO targets stabilised properties, either secondary assets in primary markets or prime assets in secondary markets, and provides long-term mezzanine capital to create tailored solutions for financing gap shortfalls. Unlike many other providers of real estate debt, MSDO does not use fund-level leverage.
MSDO attracted capital from both existing and new investors. Investors in the fund include pension plans, endowments, foundations, family offices and registered investment advisors, with investor interest stemming from both the US and Europe. Of note, most of these have been investors in prior Morrison Street funds.
Thus far, MSDO has made 21 mezzanine investments that, in aggregate, represent approximately 66 per cent of the fund’s total commitments.
Accord Capital Partners, along with its affiliate Accord Europe, served as exclusive global capital adviser to Morrison Street.
