Invesco Closes on $113M in Financings to Kick Off 2018
Invesco Real Estate has participated in roughly $252 million in financings, closing on $113.3 million to kick off the year, including the in-house origination and closing of five mezzanine and senior loans on multiple properties across the country, the firm announced last week.
“We built out our debt team in 2017… we’re seeking to deploy approximately $1.6 billion in debt capital in 2018,” Invesco Senior Director Charlie Rose told Commercial Observer. “From our debt strategy, we’re focused on non recourse, floating rate bridge loans in major markets across the country on institutional quality real estate. We’re looking to fill the gap between opportunistic debt funds and non recourse bank lenders, going up to 75 percent loan-to-cost (LTC).”
The firms originations and closings include two mezzanine loans, totaling $38.1 million, on one multifamily asset and one office property, and three senior loans, totaling $75.2 million, backed by an industrial asset and two multifamily properties.
The first senior loan was provided to a division of Newport Beach, Calif.-based Real Estate Development Associates for the ground-up construction of the Perris Gateway Commerce Centre, a roughly 400,000-square-foot Class A distribution facility in Perris, Calif.; the second senior loan was $25.2 million provided to a Veritas Capital and Avenue Secured joint venture to finance the acquisition and renovation of Blanco Crossing, a 324-unit multifamily property located at 13999 Old Blanco Road in San Antonio, Texas; the final senior loan was $20.5 million provided to a joint venture between The Carlyle Group and CAF Capital Partners for the acquisition and lease-up of the Haven at Westheimer, a newly constructed 230-unit multifamily project located at 13250 Westheimer Road in Houston, Texas.
The first mezzanine piece Invesco originated was $23.5 million provided to an affiliate of Washington, D.C.-based Roadside Development and backed by a 142-unit multifamily property within D.C.’s City Market at O at 880 P Street—the total financing package was $66 million. The mezzanine loan worked to facilitate a recapitalization and lease up of the building.
The second mezzanine loan was $14.6 million secured by Denver, Colo.-based Dividend Capital as part of a $111 million refinancing of 655 Montgomery, a 263,000-square-foot, Class A office building at 655 Montgomery Street in San Francisco, Calif.
“We have a mature equity investing businesses,” Rose said. “The debt business is the perfect compliment. It allows us to offer more products to our existing relationships and gain access to an income producing, downside-protected product in the real estate investing sector.”