February 21, 2017| Commercial Real Estate Direct Staff Report
Partners Capital, a Los Angeles boutique investment operation, has formed a venture that will originate short-term commercial real estate loans.
The venture, Archway Fund, with a West Coast investment manager, will originate middle-market loans, that is, with balances of $2 million to perhaps $20 million that amount to as much as 75 percent of a property’s value. It will lend against properties in the four major sectors – office, apartments, retail and industrial – on the West Coast.
Its loans typically will have two-year terms and would be used to provide capital to quickly complete an acquisition, for instance. Or, they can be used by sponsors who need capital for a relatively short period of time to re-entitle a property from one use or another.
Its loans also could be viewed as “plan B” loans where they could be used almost as rescue loans in the event, for instance, a sponsor facing a loan maturity suddenly has a tenant go belly up and can no longer qualify for permanent financing.
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