Term Sheet: Kennedy Wilson’s billion-dollar pipeline; retail’s surefire surge; Mavik’s clutch capital
PERE Credit
PERE Credit is the source for insight and analysis on alternative real estate credit strategies.
Kennedy Wilson builds private lending scale with an estimated $1.2 billion of deals slated to close before year-end; the retail sector is having its moment in the spotlight as managers zero in on bigger deals and take-private moves; Mavik Capital Management comes up clutch with $172 million financing to complete construction for Houston-area luxury multifamily asset; and more in today’s Term Sheet.
Tips & feedback to Samantha Rowan or email [email protected]
They said it
“You’re only as good as your last meal”
Christine Anderson , global head of corporate affairs at New York-based manager Blackstone , speaking at this week’s PERE Network America Forum on the need for returning investors and the importance of lasting legacy.
What’s new
Artwalk in the park
A burgeoning cohort of private credit managers is enjoying Hollywood-level lending stardom and pipeline momentum. Beverly Hills-based manager Kennedy Wilson revealed last week the firm is on track to close an estimated $1.2 billion of loan origination opportunities before 2024’s end. According to the company’s third-quarter earnings results, the manager has originated $2.3 billion during 2024 across the US and Europe.
Retail resurge
The necessity-based retail sector continues to see financing momentum on the heels of New York-based manager Blackstone’s $4 billion take-private of Retail Opportunity Investments Corp last week. Manager PGIM Real Estate , based in Newark, New Jersey, this week originated a $171 million loan to refinance an eight-property, grocery-anchored retail portfolio located primarily in Southeastern US markets. Continue reading...
Trending
Secondary stabilization
The commercial mortgage-backed securities market is finding some stability according to a report published this week by New York-based ratings agency Fitch Ratings . The firm’s overall US CMBS delinquency rate dropped 16 basis points to 2.73 percent in October from 2.89 percent in September because of high resolution volume, including office, retail and multifamily loans. Most notably in Fitch’s tracked universe of more than 23,000 loans, the office delinquency rate declined for the first time in 2024, driven by an office loan resolution for Toronto-based manager Brookfield’s Bank of America Plaza in Los Angeles, which defaulted earlier this year.
Data snapshot
Lending complexion
The market share composition of the real estate lending market favored life insurance company lenders in the third quarter of this year, according to a report published last week by Dallas-based advisory 世邦魏理仕 . Among non-agency lending groups, life company lenders composed 43 percent of the market followed by alternative lenders, which accounted for 34 percent. Read more...
People
Criterion collection
New York-based manager Criterion Real Estate Capital this week expanded its leadership team with a pair of real estate debt-focused appointments. The firm hired Benjamin Milde as chief operating officer and Adam Matos as managing director.
Loan in focus
Clutch capital
Private credit lenders are finding more construction financing in-roads by originating debt to complete existing projects. New York-based manager Mavik Capital Management last week represented one such example, originating a loan to fund the completion of X Houston, a 475-unit luxury multifamily project in Houston. The loan was originated on behalf of an affiliate of New York-based manager Raven Capital Management .