Churchill Real Estate lines up $2B investment for residential lending

Funds will allow firm to capitalize on distress opportunities in struggling market

New York /
Aug.August 14, 2020 12:00 PM
Churchill Real Estate Holdings’ Justin Ehrlich (iStock)
Churchill Real Estate Holdings’ Justin Ehrlich (iStock)

Churchill Real Estate has secured $2 billion to provide debt on residential real estate.

The capital, raised from institutional and foreign investors, will go towards the real estate investment firm’s residential transition lending portfolio, the company announced in a release. Churchill specializes in debt, equity and distressed real estate.

WATCH: Coffee Talk: Churchill’s Justin Ehrlich and Elliman’s John Gomes on NYC neighborhoods and doing deals during an election year

“This transaction positions Churchill to expand our ability to capitalize on the burgeoning real estate market opportunities related to [residential transition lending], which include investor-purpose debt, bridge funding, fix-and-flip financing, condo inventory, and new construction loans,” said Travis Masters, a managing partner at the firm.

The funding comes at a time when the real estate market is awash with distress. Condo inventory loans have also become harder and more expensive to acquire, as lenders take a cautious approach to new condo developments.

In May, Ceruzzi president Art Hooper told The Real Deal that an inventory loan for the firm’s struggling Hayworth condominium on the Upper East Side had fallen through after the pandemic hit. A refinancing deal at Sharif El-Gamal’s 45 Park Place also stalled.

“There’s no question that the condo market is not robust in New York,” Hooper said at the time, adding that Ceruzzi was exploring a range of options, including renting the units or entertaining offers from bulk buyers.

Churchill, which manages a portfolio of assets valued at $1.3 billion, was founded by Justin Ehrlich and Sorabh Maheshwari. The firm can use its latest funding across its lending and investment portfolios. Since last year, it has been raising cash for distressed opportunities, from failed condo projects to struggling retail.

Write to Sylvia Varnham O’Regan at [email protected]


Related Articles

arrow_forward_ios
LoanCore Capital CEO Mark Finerman and 4707 Venice Boulevard (Google Maps)
Ralphs-anchored Mid-City mall nabs $64M refi
Ralphs-anchored Mid-City mall nabs $64M refi
Combined Properties Chairman Ronald Haft, AECOM Capital CEO Warren Wachsberger and Pendry West Hollywood
AECOM JV lands $500M loan on boutique hotel-condo
AECOM JV lands $500M loan on boutique hotel-condo
Renderings of the Little Tokyo Service Center (KoningEizenberg) 
$275M approved for LA affordable housing projects
$275M approved for LA affordable housing projects
Josh Zegen and rendering of 21555 Oxnard Street (iStock, Google Maps)
Madison Realty Capital provides $34M loan-on-loan for Warner Center redevelopment
Madison Realty Capital provides $34M loan-on-loan for Warner Center redevelopment
Brookfield CEO Brian Kingston and 725 South Figueroa Street (Google Maps)
Brookfield lands $305M refi for Ernst & Young Plaza in DTLA
Brookfield lands $305M refi for Ernst & Young Plaza in DTLA
Interest rate drops spur loan requests from multifamily borrowers (Credit: iStock)
Multifamily owners rush to refinance their mortgages
Multifamily owners rush to refinance their mortgages
Best of TRD 2019 promo
Coming soon: The Real Deal’s Best of 2019
Coming soon: The Real Deal’s Best of 2019
2201 Rosecrans Ave in El Segundo
Continental snags $55M refi on El Segundo office portfolio
Continental snags $55M refi on El Segundo office portfolio
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...