Multifamily Investor Cortland Forms Prefered Equity JV With Declaration Partners
Partnership with David Rubenstein-anchored firm targets gap financing for refinancing apartment assets.
By Andrew Coen September 16, 2024 7:00 am
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Multifamily investor Cortland is teaming up with David Rubenstein-anchored Declaration Partners Real Estate in a programmatic joint venture that will infuse gap capital for refinancing U.S. apartment properties, Commercial Observer can first report.
The preferred equity JV, announced by the two firms Monday, will have initial capital of $100 million and target Atlanta-based Cortland’s key markets in the Sun Belt and Mountain West regions The partnership, which follows years of the firms investing together across multiple multifamily properties, aims to provide subordinate debt investments in the $5 million to $25 million range.
“We believe this well-timed venture positions us to help satisfy the ongoing demand for so-called ‘gap’ capital from owners who are coming up short on proceeds when refinancing debt on their multifamily properties,” Jason Kern, Cortland’s president of investment management, said in a statement.
Atlanta-based Cortland has more than 250 apartment multifamily investments consisting of over 80,000 units. The firm closed a $1.5 billion value-add fund in August that exceeded its $1 billion target, as CO first reported at the time.
New York-headquartered Declaration Partners is anchored by the family office of Rubenstein, who is also the founder of private equity giant Carlyle Group and the longtime philanthropist who bought Major League Baseball’s Baltimore Orioles for $1.75 billion this past winter. Declaration has roughly $2.2 billion in assets under management across its private investment strategies including commercial real estate.
“We believe Cortland’s multifamily investment and operational expertise pairs well with Declaration’s flexible capital, sourcing capabilities, and structuring acumen,” Declaration partner Ron Dalal said in a statement. “We are excited to partner with Cortland to provide preferred equity for both operational assets and development projects.”
Andrew Coen can be reached at acoen@commercialobserver.com
