NEW YORK, N.Y. – February 16, 2012 – (RealEstateRama) — Hudson Realty Capital LLC (Hudson) and RXR Realty LLC (RXR) have launched a commercial real estate lending platform to originate and/or purchase commercial real estate debt assets. The two experienced lending and real estate entities will focus on first-mortgage bridge loans as well as B-Notes, mezzanine and preferred equity opportunities in the New York Tri-State region. The venture will provide solutions for borrowers who have complex capital structures or ownership circumstances and can benefit from creative capital and structuring. RXR will also offer assistance to help its clients address property-level related issues.
Hudson and RXR will provide creative discretionary capital on transactions that banks and traditional lenders may not be able to underwrite. RXR, which owns interests in and/or manages more than 17 million square feet of property in New York City and the surrounding tri-state area, has significant experience operating in these markets. Hudson manages a portfolio of more than $2 billion in real estate assets and has extensive in-house resources for originating, underwriting and servicing real estate loans.
Both Hudson and RXR will source investment opportunities through their comprehensive and diversified networks of business relationships. The partners will seek to unify and take advantage of each firm’s unique real estate experience. RXR will provide real estate underwriting through use of its investment management, property operations and corporate operations teams, and Hudson will offer due diligence, asset management and loan servicing expertise.
“This is a natural extension of our real estate investment platform,” said Michael Maturo, president of RXR. “We have been active acquirers and originators of large structured finance investments in the past, but have passed on many attractive smaller deals that were not efficient for us to transact. This platform will combine the benefits of our long-standing presence and relationships in the New York Tri-State markets with Hudson’s origination and servicing skill set.”
The joint venture will generally target loans or make investments in amounts between $10 million and $50 million throughout the capital stack. Hudson and RXR believe that this is a significantly underserved segment of the market, particularly for value-add investments as well as recapitalizations of complex capital structures. The venture will participate in most property types, including office, multi-family, retail, industrial, mixed-use and self-storage.
“We have known the principals of RXR for many years and have great respect for them and their organization,” said David Loo, Hudson’s managing director and principal. “The joint venture will be mutually beneficial and is a natural extension of both Hudson and RXR’s core competencies. We are excited to be working with RXR in this capacity.”
“We have known David Loo and Richard Ortiz for over 15 years and are very excited about joining with them to form this joint venture,” added Scott Rechler, CEO of RXR. “We believe the combined set of skills will provide for a unique offering in the market.”
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About Hudson Realty Capital
Hudson Realty Capital LLC (Hudson) is a real estate fund manager with more than $2 billion of assets currently under management. Since the formation of its initial two funds in 2003, the company has closed $3.5 billion in transactions. Activities include originating, participating in, servicing, restructuring and/or acquiring high-yield, special situation debt and mezzanine loans. In addition, the company invests directly in real estate and the acquisition of under-performing real estate assets and other real estate-related instruments. Based in New York City, the company maintains regional offices in Portland, Maine and Fort Myers, Florida. Hudson was established as a Minority Business Enterprise (MBE), reflecting a rich diversity within its leadership. www.hudsonrealtycapital.com
About RXR Realty
RXR Realty LLC (RXR) is a vertically integrated private real estate company with expertise in investment management, property management, development, design, construction, leasing and financing.
RXR’s core growth strategy is focused on New York City and the surrounding tri-state area markets. The Company is one of the largest owners, managers and developers in the New York Tri-State area with interests in approximately $4.5 billion of assets, comprised of 105 operating properties containing approximately 17.1 million square feet. For more information about RXR, visit www.rxrrealty.com.
Contact:
Media Contact for Hudson Realty Capital: Carin McDonald / 201-796-7788 / carin (at) caryl (dot) com
Media Contact for RXR Realty: Ed Tagliaferri / 212-981-5182 / edmund_tagliaferri (at) dkcnews (dot) com
