As wary lenders continue to hinder refinancing deals and real estate acquisitions, Regent Properties is stepping up to fill a void in the market.
Regent, headquartered in Dallas and Los Angeles, has launched a $500 million credit platform at a time when banks are reluctant to dish out commercial real estate loans amid high interest rates, dire struggles within the office sector and general economic concerns, the Dallas Business Journal reported.
Regent’s credit platform will focus on providing senior secured mortgage financing, mezzanine debt and preferred equity capital secured by commercial real estate assets, with an emphasis on Sun Belt markets. The services offered will include acquisition financing, refinancing and structured rescue capital. In limited cases, the firm will provide financing for new construction, renovation and leasing efforts across residential, office and retail properties.
Regent aims to fill a gap in the market for property types that are either over-leveraged or struggling to secure financing, CEO Eric Fleiss told the outlet. The company, which manages about $2.3 billion in assets, has been planning to develop a debt vertical for years and sees the current market as an ideal opportunity.
The credit platform has received substantial backing from a Texas-based ultra-high net worth family office and several limited partners. The family office wasn’t identified.
Regent Properties anticipates growing demand for financing in the coming months as property owners are prompted to sell. Many loans issued between 2019 and 2021 are reaching their initial maturities or extension deadlines, with many banks reluctant to extend. That creates a significant need for capital to fill the resulting gaps in the market.
Leading the strategy for Regent’s credit platform are executive vice presidents Alan de Castro and Patrick Devitt, who will be responsible for origination, underwriting, due diligence and execution, the outlet said. De Castro, based in Dallas, oversees loan transactions in the eastern region of Regent’s operations.
—Quinn Donoghue
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