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

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.

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“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 so@therealdeal.com