Term Sheet: CDPQ’s C-PACE supercharge; Expo Real’s semi-optimism; Monarch’s real estate priorities
PERE Credit
PERE Credit is the source for insight and analysis on alternative real estate credit strategies.
C-PACE Alliance financing gathers more momentum with Nuveen Green Capital and Caisse de dép?t et placement du Québec (CDPQ) linking up on a $600 million investment initiative; continued stasis is causing some lender and sponsor exhaustion in the real estate market, but Expo Real attendees show signs of stateside dealflow optimism; Monarch Alternative Capital LP outlines its real estate credit, CMBS and equity investing priorities with the close of its $4.7 billion fundraise last week; and more in today’s Term Sheet.
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They said it
“There are new players in the market that didn’t really go through the global financial crisis, and they’re still finding their sea legs”
Jennifer Cleare , senior director of strategic advisory solutions at New York-based advisory SitusAMC , told PERE Credit this week how managers looking to scale are facing more risks in the current market.
What’s new
Montreal C-PACE exposition
The commercial property-assessed clean energy financing market is gaining more institutional momentum. Montreal-based pension fund CDPQ and Connecticut-based manager Nuveen Green Capital this week launched a $600 million integrated financing program to combine senior and C-PACE financing and match the growing market demand for capital to back sustainable commercial real estate assets and their development with bridge and construction loans. The two organizations will specifically target investments in energy efficiency, water conservation, renewable energy and resiliency improvements. Continue reading...
Close call
Week by week, more real estate private credit fundraising milestones are being reached. Forum Investment Group this week hit its own milestone when the Denver-based manager closed its first multifamily credit fund with $226 million of capital committed, PERE Credit revealed this week.
Trending
Expo sanguine
Commercial real estate private credit managers that this week attended Expo Real, the global real estate conference held each year in Munich, were optimistic that 2025 will be a better year for an industry badly affected by hawkish central bank policies in recent years.
Debt in the details
Real estate credit is top of mind even for private credit managers that allocate more broadly toward corporate credit. New York-based manager Monarch Alternative Capital LP revealed plans to allocate up to 25 percent of its sixth opportunistic fund toward real estate credit, commercial mortgage-backed securities and equity opportunities. The vehicle, Monarch Capital Partners VI, closed last week with more than $4.7 billion of capital committed...
Data snapshot
Office obstacles
The office sector is facing its own wall of real estate loan maturities as the remainder of the landscape contends with refinancing, extending and finding other means of solving debt dilemmas. New York-based data provider MSCI Inc. broke the office loan wall down by lender type in its capital trends report last week, showing CMBS and bank lenders are among the top holders of maturing loans over the next three years.
Loan in focus
Dallas hotel mavericks
High-tier hospitality remains a steady target for refinancing capital. The Ritz-Carlton Dallas, Las Colinas, this week secured a $210 million refinancing package originated by New York-based manager Marathon Asset Management . The funding will be used by a joint venture between Honolulu-based manager Trinity Investments and Swiss-based manager Partners Group to recapitalize the 427-key Dallas-Fort Worth area resort.