Madison Realty Capital is planning to invest up to a billion dollars for a new debt strategy to target value-add and core-plus US real estate opportunities.

The New York City-based manager said it has closed on the new debt investment vehicle with up to $1bn (€840m) of investing capability.

Madison Realty said it will originate and acquire senior loans and mezzanine loans as well as make preferred equity investments backed by a diversified pool of transitional real estate assets. The new vehicle also enables Madison Realty to provide other alternative real estate lenders with financing solutions on both a single asset and overall portfolio basis.

Josh Zegen, managing principal and co-founder of Madison Realty Capital, said: “Expanding our product offering is consistent with Madison’s approach of developing financing solutions to meet the evolving needs of our borrowers and to capture more income-oriented opportunities we might have otherwise had to forego.

“This new strategy, which builds on the strengths of Madison’s core lending platform, will also allow us to offer investors a differentiated return profile while maintaining our commitment to generating risk-adjusted returns across cycles.”

To read the digital edition of the latest IPE Real Assets magazine click here.