TH Real Estate has provided $141.5m (€121.4m) to a joint venture between KKR and TMG Partners to finance the acquisition and future capitalisation of an 18-story office tower in Oakland, California.
In July, property developer TMG sold 1330 Broadway in Downtown Oakland, to investment firm KKR. TMG also announced it is investing in the new partnership with KKR, and will continue with onsite property management and asset management.
TMG recently carried out a $31.5m repositioning from 2015 to 2018. TMG will retain a minority ownership in the property and continue to carry out the day to day management.
Jason Hernandez, the managing director and head of originations at TH Real Estate, said: “We continue to see compelling opportunities in real estate debt, particularly in senior floating-rate, transitional loans for properties that are being repositioned or renovated.
“[These opportunities] provide attractive risk-adjusted returns and allow us to offer a full suite of financing options to our borrowers, including long-term fixed-rate debt and mezzanine financing.”
TH Real Estate is a subsidiary of Nuveen, the investment management arm of US financial services group TIAA.