Term Sheet: Berkshire and Limekiln’s $2bn fundraise; January’s talent jumble; North Bridge’s Vegas C-PACE close

Berkshire and Limekiln Real Estate Investment Management, LP are set to target more bridge lending opportunities following a $2 billion capital raise for a joint strategy; The real estate executive shuffle has kicked off with GIC , Madison Realty Capital and Parkview Financial?? each making senior appointments; North Bridge and ACORE CAPITAL blend C-PACE and senior lending for a $161 million Las Vegas construction deal; and more in this week's Term Sheet.

Tips & feedback to Samantha Rowan or email [email protected]

They said it

“A lot hinges on where the yield on the 10-year Treasury goes”

Todd Everett , global head of private markets at Iowa-based manager Principal Asset Management , told PERE Credit this week how the cost of debt could rise to peak levels seen in 2024 depending on the key benchmark’s fluctuation.

What’s new

Closing time

Alternative lenders have started the year with strong fundraising momentum. Boston-based manager Berkshire Residential Investments and New York-based manager Limekiln Real Estate Investment Management, LP have completed the final closing of Berkshire Bridge Loan Investors-MF1 III, a debt strategy with $1.99 billion in commitments. Continue reading...

People

Musical chairs

The start-of-year wave of appointments and promotions kicked off this week, with five real estate executives on the move.

• Cityview : Los Angeles-based investment manager and developer Cityview hired Christoph Donner to head up global capital development and strategy. He was formerly chief executive officer at Newport Beach, California-based manager PIMCO ’s real estate business per his LinkedIn profile. Donner oversaw PIMCO’s real estate debt and equity business in the Americas from 2014 until taking on a senior advisory role for the business in July last year.
• Madison Realty Capital : New York-based manager Madison Realty Capital brought on Brad Cohen as managing director and head of asset and portfolio management, PERE Credit exclusively reported this week. Cohen moved from San Antonio, Texas-based manager Affinius Capital where he worked from July 2013 and was most recently senior managing director and chief credit officer for the firm’s credit strategies per LinkedIn.

Trending

Slipping into the future

Private real estate fundraising activity continued falling for the third consecutive year in 2024, according to affiliate PERE’s full-year fundraising report [trial or subscription required].

Milwaukee Bucks

Chicago-based manager Pearlmark and Little Rock, Arkansas-based Bank OZK last week provided $133.3 million in financing for what will be the tallest mass timber building in North America. The Edison, a planned luxury apartment complex in Milwaukee, will rise to 32 stories and comprise 378 units and is being constructed by Neutral, a local development company.

Continue reading...

Data snapshot

Dubious milestone

The commercial mortgage-backed securities market is flirting with a dubious milestone as the US special servicing rate rose in December 2024 by 36 basis points to 9.89 percent, according to a report published this week by New York-based data provider Trepp, Inc. . The special servicing rate rose by 311 basis points throughout 2024 but has not breached the 10 percent level since November 2020.

Loan in focus

Las Vegas C-PACE Aces

Commercial property-assessed clean energy financing capital is rolling big in Nevada. New York-based manager North Bridge this week originated a $108 million C-PACE construction package alongside a $53 million construction loan from San Francisco-based manager ACORE CAPITAL to fund the expansion of AREA15 district.

Read this week's Term Sheet in full here.