ACRE Closes $1B Multifamily-Focused Credit Vehicle 

ACRE has closed its second credit fund with $1 billion in capital raised for multifamily lending opportunities, Commercial Observer has learned.

The company’s ACRE Credit Fund II was fully subscribed four years after the global private equity firm launched its first multifamily credit lending vehicle with $509 million raised. 

“We believe the current environment represents one of the most compelling backdrops for multifamily credit in over a decade, fueled by a persistent housing supply-demand imbalance, a wall of loan maturities following historic interest rate hikes, and a fundamental shift in capital treatment across global banks,” Daniel Jacobs, managing partner at ACRE, said in a statement. 

The new credit fund will target multifamily loans from $25 million to $125 million all across the U.S., particularly in the core-plus markets. ACRE plans to deploy the capital over the next three years. 

Since its founding in 2011, ACRE has executed more than $7 billion in real estate transactions from 195 debt and equity investments, including three collateralized loan obligations and one Freddie Mac Q-deal, according to the company.  

“With over $4 billion in lending capacity, deep borrower relationships, and a history of disciplined execution across cycles, ACRE is exceptionally well positioned to deploy capital into this dislocated market,” Jacobs said.

Andrew Coen can be reached at acoen@commercialobserver.com