Jared Kushner’s Kushner Companies plans to lend $200 million annually to developers over the next five years, according to its president Laurent Morali.
“We like the opportunity to deploy our capital in a different place in the capital stack,” Morali said, according to the New York Post.
The Real Deal first reported in May that Kushner Companies had quietly launched a lending arm, and bought the mezzanine debt on JDS Development and the Chetrit Group’s 9 DeKalb Avenue. According to an offering email reviewed by TRD at the time, the firm plans to issue preferred equity, mezzanine debt and senior debt ranging from $20 million to $500 million.
On Monday, TRD reported that Kushner Credit Opportunity Fund is backing Toby Moskovits’ Bushwick mixed-use project 215 Moore Street with a $33 million loan.
Kushner Companies is one of several real estate development firms that have launched lending arms over the past year, in an effort to fill the void left by more cautious banks.
“As a lender, we will look at the sponsor and the borrower and if it’s the type of project we could have done as an owner in a great area, it gives us more optionality,” Morali said.