California teachers’ fund and Miami REIT launch $200M fund

The new fund will focus on bridge lending

TRD MIAMI /
Aug.August 21, 2018 02:30 PM

CalSTRS, led by CEO Jack Ehnes, backs Miami-based 3650 REIT to focus on bridge lending (Credit: iStock)

Miami-based 3650 REIT just announced a partnership with the California State Teachers’ Retirement System to form a $200 million joint venture focusing on bridge and short-term real estate financing.

The new fund will provide loans for ground-up construction, recapitalizations, acquisitions and repositions in some U.S. markets where traditional capital is unavailable. After the initial $200 million commitment from the CalSTRS, the joint venture could receive a additional commitment of $300 million in the future, according to a press release.

CalSTRS is the largest retirement fund for teachers in the United States with a portfolio of more than $220 billion. About 13 percent of the total fund’s investments is allocated to real estate.

3650 REIT, launched in April, is a national portfolio lender led by real estate finance veterans Jonathan Roth, Toby Cobb and Justin Kennedy. Kennedy and Cobb were co-CEOs of LNR Property before resigning to found Grass River Properties following Starwood Property’s 2013 takeover of LNR. Roth previously worked as president of Canyon Partners Real Estate, and Cobb was previously co-head of U.S. commercial real estate lending for Deutsche Bank.

In addition to its Miami headquarters, 3650 REIT has offices in New York, Chicago, Los Angeles and Newport Beach. The company and its related companies own or manage over 2 million square feet of commercial real estate across the United States, according to the release.

Bridge lenders have become active in commercial real estate in South Florida and throughout the country in recent years as banks and other financial institutions are dialing back their construction lending.  — Keith Larsen


Related Articles

arrow_forward_ios
Rendering of the Edgewater Holiday Inn pool

Bank OZK lends $28M for Holiday Inn project in Edgewater

Rendering of SLS Resort Residence & Marina Hallandale Beach, Ari Pearl, Sam Nazarian and Faisal Ashraf

Ari Pearl lands $100M loan to build first phase of SLS project in Hallandale Beach

David Martin and the site at 2655 South Bayshore Drive (Credit: Realtor)

Terra closes on $185M construction loan for latest Coconut Grove project

Renderings of 400 Biscayne and Kevin Maloney 

Developers land $162M loan for downtown Miami co-living tower

Rendering of the Brickell hotel development, Tony Cho and Robert Finvarb

Finvarb and Cho land construction loan for mixed-use hotel near Brickell City Centre

Rendering of Pura Vida Hialeah with Michael Wohl, Stephen A. Blumenthal, Victor Brown, and David Brown

Developers score loan for mixed-use project in Hialeah

State report finds open gas valve fueled building explosion at Plantation shopping center

Bayside Marketplace is planning another high-rise entertainment venue with a view

arrow_forward_ios