Gryphon Real Estate Capital Partners and CarVal Investors have created a $1bn (€848.7m) US multifamily real estate loan venture.
The Gryphon-CarVal Multifamily Loan Program already has over $150m multifamily loans closed or under a signed term sheet, with a plan to deploy $1bn or more over the next two years, the companies said.
The venture – formed to originate multifamily senior bridge loans in primary and secondary markets – will target loans range from $20m to $75m with competitive market pricing.
Loan servicing and asset management will be retained by the joint venture, the companies said.
Gryphon and CarVal will target sponsors focused on either value-add or lease-up strategies.
Seth Cohen, a principal for CarVal Investors responsible for managing loan portfolio investments globally, said: “We believe this is a compelling time to enter the multifamily bridge loan market. Our partnership with Gryphon is rooted in our shared thesis that there is a long-term need for middle-income housing, particularly in growing US markets.”
Paul Mullaney, managing director for CarVal Investors’ North American Real Estate business, said: “Gryphon has built an institutional, data-driven platform with extensive multifamily lending expertise, which melds well with CarVal’s investment strategy.”
Angelo LoBosco, managing partner at Gryphon Real Estate Capital Partners, said: “We are excited to join forces with CarVal as we launch this well-capitalised and synergistic venture. We look forward to building out the Gryphon-CarVal platform by successfully executing on our investment strategy.”
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