The Real Deal New York

RXR raising $1B for second debt fund

Developer secured $500M from unnamed investor
By Konrad Putzier | November 29, 2018 12:00PM

RXR Realty’s Michael Maturo and Extell’s Brooklyn Point at 138 Willoughby Street (Credit: RXR and Curbed NY)

RXR Realty is raising $1 billion for its second real estate debt fund, the company’s chief financial officer Michael Maturo said Thursday.

As part of the vehicle, the development company is raising $500 million from an unnamed institution and another $500 million from other investors.

In August, Maturo told Commercial Observer that RXR was raising “$500 million in a fund vehicle to continue to invest on the debt side.” RXR could not immediately be reached for comment and it wasn’t clear if the company increased its fundraising target.

“We consider ourselves a value-add lender,” Maturo said Thursday, speaking at a breakfast forum hosted by Friedman LLP in Manhattan. Apart from money, RXR also offers borrowers advice on how to develop projects, he added.

RXR issued a $105 million mezzanine loan to fund Extell Development’s Brooklyn Point project and has issued around $350 million in loans this year.

Maturo said that the same unnamed institution that committed $500 million previously invested $250 million in RXR’s first debt vehicle.

RXR’s fundraising efforts come as a growing number of development companies join the lending business. Slate Property Group, for example, recently partnered with private equity company Carlyle Group to launch a $750 million commercial real estate debt venture.