Cain International Continues US Expansion With $1.2B New York Loan Portfolio Buy

reprints


Four years after its first entry into the U.S., London-based Cain International is further scaling its business on American soil with the acquisition of more than $1.2 billion of New York construction loan commitments from Pacific Western Bank (PacWest), the global investment firm announced Friday.

The portfolio includes 10 loans for projects throughout New York state for multifamily and student housing developments with an aggregate principal balance of roughly $500 million.

SEE ALSO: Deutsche Bank, KSL Partners Provide $185M Refi for Miami Hotel

The deal, which involves undisclosed properties largely in New York City, adds to Cain’s U.S. footprint since it executed a nearly $300 million investment in the renovation of midtown Manhattan’s Crown Building in 2019.

“When we set out to grow that business in the U.S., we didn’t do it to be a marginal or small player,” Matt Rosenfeld, managing director and head of U.S. debt at Cain International, told Commercial Observer on Friday. “We wanted to do something at scale and with the support and the backing of our investors we’ve been able to do that in a meaningful way.”

After roaring out of the gate with heavy deal volume in 2019 just before the COVID-19 pandemic, Cain largely stepped back in 2020 and 2021 in a move Rosenfeld said is now paying dividends with a “clean book” that has enabled continued growth amid challenging market headwinds with limited liquidity. 

Since its founding in 2014, Cain has originated more than $7 billion of global real estate debt, including a $750 million construction loan for the development of the Aman New York in late 2019. The firm manages over $15 billion in assets across the U.S. and Europe through its real estate equity, real estate debt, and private equity platforms. 

“We’ve made a very concerted effort at the start of this year to focus on the markets that we know and the product types that we know and the sponsors that we believe in,” Rosenfeld said. “We’re quite sober investors and I think we’re quite thoughtful about the way we do things, so to us it’s about measured, sustainable and long-term growth, and it’s not about getting as much done as you can in a short period.”

Andrew Coen can be reached at acoen@commercialobserver.com