KKR’s Global Real Estate Head
Commercial Observer
Connecting and informing industry leaders of trends and individuals defining the global commercial real estate landscape
Ralph Rosenberg runs the global real estate operations of one of the marketplace’s biggest investors, KKR. He talked at length with Commercial Observer about trends in that marketplace and where the firm is looking to put money next. Also for today: Banks in particular are offloading money-losing loans tied to commercial property.
— Tom Acitelli, Deputy Editor
KKR's Ralph Rosenberg Is Not Sitting on the Sidelines
When Ralph Rosenberg came to KKR in 2011, the company didn’t have a real estate practice. “Building a real estate business was a strategic priority of senior leadership,” Rosenberg recalled from a 79th-floor meeting room at the company’s 30 Hudson Yards headquarters. “And, if I was going to join a firm, I wanted to feel relevant and that I could really make an impact.” Yes, Rosenberg made an impact. Starting from zero, KKR now has some $70 billion of real estate assets under management (about $30 billion on the credit side, $40 billion on the equity side). KKR’s real estate practice, which Rosenberg runs, employs approximately 150 professionals in 16 offices in 11 countries. Just last year, KKR raised $69 billion and purchased Global Atlantic, the $150 billion insurance company. (They already owned a stake in the company but purchased it outright.)
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Lenders, Especially Banks, Are Starting to Sell a Lot More Loans on Office Buildings
Money-losing sales of loans secured by offices and other types of struggling commercial real estate are gaining momentum. Banks in particular appear to be offering to sell substantially more loans secured by office buildings and other commercial properties than they put on the market last year. For example, Canadian Imperial Bank of Commerce (CIBC) agreed to sell $316 million of loans on office buildings in Austin, Phoenix, Seattle and San Francisco at a discounted price, according to the Financial Post. Also in the last couple of weeks, Bloomberg reported investment bank Morgan Stanley plans to buy about $700 million of commercial real estate loans from a group including Blackstone, Rialto Capital and the Canada Pension Plan Investment Board. The CRE loans had been on the books of failed Signature Bank.
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