3650 REIT Forms New Commercial Real Estate Finance Joint Venture
Aug 21, 2018, 09:54 ET
MIAMI, Aug. 21, 2018 /PRNewswire/ -- 3650 REIT, the national commercial real estate lending, investment and services firm, today announced a new joint venture with the California State Teachers' Retirement System. The JV is dedicated to 3650 REIT's bridge and event driven lending strategy and will include an initial $200 million commitment with an accordion feature for a potential total commitment of $500 million.
3650 REIT is a portfolio lender dedicated to originating, holding and servicing real estate secured loans that are individually structured to meet the business objectives of its borrowers. Founded in April 2018, it is led by commercial real estate finance veterans Jonathan Roth, Toby Cobb and Justin Kennedy. Its strategies include long-term, first-lien mortgages, bridge and event driven financing, opportunistic investments and relationship-focused loan servicing and asset management.
3650 REIT's discretionary bridge and event driven lending strategy originates senior and mezzanine loans and preferred equity commercial real estate investments without employing external leverage.
CalSTRS Director of Real Estate Mike DiRé, said, "CalSTRS has a longstanding working relationship with 3650 REIT co-founder Jonathan Roth. Because of our relationship with him and the team he and his partners have assembled we're confident that our new joint venture will bring the returns we expect. As a long-term investor CalSTRS seeks opportunities with our trusted partners to generate an enhanced yield to the actuarial earnings rate assumption thus maintaining our mission to secure the retirement benefits of California's educators."
Jonathan Roth, Managing Partner and co-founder of 3650 REIT, said, "We are honored to collaborate with CalSTRS, a world class institution recognized for its thoughtful and disciplined real estate investment strategy. Its institutional model is aligned with our long-term values, our philosophy as a relationship lender, and our commitment to providing real estate owners and operators with more than just capital. Our unlevered bridge lending strategy targets real estate assets that are in transition. Forming this partnership now with CalSTRS provides opportunities to target transitional assets with misjudged value, structural complexity or time sensitivity."
The venture's investment activities will target originating loans to well-capitalized sponsors seeking debt capital for properties located in prime U.S. markets. The loans will be for groundup construction, recapitalizations, acquisitions and repositions where traditional capital is unavailable or not capable of fully satisfying the sponsor's needs.
For more than 20 years, 3650 REIT principals have played leading roles in CRE debt markets with track records of success across CRE lending, capital markets, and loan servicing. Through this experience came the determination to create a new and better borrower experience: a portfolio lender delivering reliable, customer-focused outcomes that align the interests of all parties in the lending and servicing process from origination through maturity.
About 3650 REIT
3650 ("Thirty-Six Fifty") REIT is a fully integrated, national CRE investment and services firm headquartered in Miami with offices in New York, Chicago, Los Angeles and Newport Beach. 3650 REIT and its related companies own or manage over two million square feet of commercial real estate across the United States. 3650 stands for the firm's commitment to borrowers and equity partners: 3,650 days to service and asset manage loans of up to ten-years with the goal of helping borrowers and equity partners maximize cash flow and grow value in an ever evolving CRE landscape. The firm was co-founded by Jonathan Roth, Toby Cobb and Justin Kennedy. For more information visit: www.3650REIT.com
SOURCE 3650 REIT