Almanac Realty Investors Commits up to $262.5 Million to Mortgage Lending Unit of Mack Real Estate Group
October 28, 2015 – New York - Almanac Realty Investors ("Almanac") is pleased to announce its investment in a newly formed mortgage real estate investment trust ("REIT") managed by an affiliate of Mack Real Estate Credit Strategies L.P. ("MRECS") and Mack Real Estate Group ("MREG").
The new REIT will provide first mortgages for transitional commercial assets in North America and Europe, has secured a lead investment commitment up to $262.5 million from Almanac Realty Securities VII, L.P., an investment fund managed by Almanac, and expects to close approximately $1 billion of senior loan commitments by year end. The business is led by Richard Mack, CEO of MREG, and Peter Sotoloff and Mike McGillis, MRECS' CIO and CFO, respectively.
Mack Real Estate Credit Strategies was established to be a one-stop shop for borrowers with transitional assets, in particular to provide capital for deals that traditional banks are less likely to finance due to increased regulation or complexity and execution risk that are better suited to an integrated real estate firm. The debt strategy will benefit directly from Mack Real Estate Group's significant real estate ownership, management and development experience required to underwrite such transitional properties. MRECS focuses on properties in need of flexible capital and sponsors seeking an experienced, sophisticated real estate lending partner. The new REIT is the first mortgage/senior lending unit of MRECS.
MRECS brings together the Mack family's experience operating real estate credit strategy funds, commercial real estate securities funds, and investing in debt-based real estate opportunities at AREA Property Partners, with Peter Sotoloff's deep and multi-faceted background in real estate structured finance from his experience with Blackstone Real Estate Debt Strategies (BREDS). The Mack family and Mack Real Estate Group also bring multi-generational, global real estate experience and ownership, as well as significant in place capabilities in property development, property management and asset management. These seasoned equity professionals provide MRECS's growing loan origination team with the ability and experience to underwrite and assess transitional real estate risk and actively asset manage transitional loans.
About Almanac Realty Investors
Almanac Realty Investors is a leading provider of growth capital to public and private real estate companies. From the time of its founding in 1981, originally under the name Rothschild Realty, the group has raised $4.6 billion related to a wide array of real estate opportunities. Since 1996, Almanac Realty Investors' primary investment activity has consisted of making private placements into public and private real estate operating companies. To date, Almanac Realty Securities has committed/invested approximately $3.5 billion into more than 37 companies in North America. For more information, please visit our website at www.almanacrealty.com.
About Mack Real Estate Group
Mack Real Estate Group (MREG) is an enterprise devoted to managing the Mack family's capital, institutional capital, and high net worth capital through direct and partnership investments in real property and related securities. MREG currently specializes in domestic and international real estate investment, development and financing opportunities. The company brings together the expertise to recognize and analyze new real estate opportunities with the necessary speed and flexibility to maximize them, while retaining the ability to hold assets long-term and maintain hands-on management.