$582 Million Real Estate Fund
Commercial Observer
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Investment houses are closing a fair amount of fresh commercial real estate funds to capitalize on changes and distress in the marketplace. Add another one to the trend. Also for today: Several New York City multifamily loans tied to the now-shuttered Signature Bank might be in default.
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Brasa Capital Closes Largest Real Estate Fund With $582M in Commitments
Los Angeles-based real estate investment manager Brasa Capital Management has closed a new $582 million fund, its largest real estate fund to date, the company announced Tuesday. Brasa will devote the fund, called Brasa Real Estate Fund III, to investing in middle-market residential and commercial assets in the Western U.S. and Texas, the company said in its announcement. Eric Samek, founder and managing director at Brasa, told Commercial Observer the company benefited from “a majority of our existing investors coming into the new fund,” as well as 12 new investors. The combined investments allowed this third fund to exceed its predecessor fund by approximately 30 percent.
Madison Realty Capital Facing Pre-Foreclosure at Eight NYC Residential Buildings
Madison Realty Capital has been hit with six separate pre-foreclosure actions after a trio of lenders alleged the private equity firm defaulted on a total of $76 million in debt at eight residential buildings in Manhattan and Brooklyn, according to court filings. The three lenders — the Community Preservation Corporation (CPC), Neighborhood Restore and Related Fund Management — acquired Madison Realty’s debt on the buildings after it bought a $5.8 billion package of former Signature Bank loans in 2023 comprising “significant numbers” of rent-stabilized apartments, according to PincusCo, which first reported news of the foreclosures. The lender group claimed borrower Madison Realty was in default on loans at eight buildings tied to the now-defunct Signature Bank.
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