Peakhill Capital, a commercial real estate lending company, has recently announced a strategic joint venture with Declaration Partners, an investment firm. This partnership aims to provide “gap capital” to owners of residential rental properties who are facing loan paydowns.
The new JV will focus on funding preferred equity investments ranging from $5 million to $25 million in multifamily, student housing, and build-for-rent (BFR) projects. By offering this “gap capital,” the JV hopes to support asset owners by filling the financial gap behind agency loans such as LifeCo and CMBS loans.
In the next 12 months, Peakhill Capital plans on reaching a production goal of $300 million. According to Todd Rich, Co-founder of Declaration Partners and head of their real estate team: “Many multifamily property owners are finding themselves in need of loan paydowns from their lenders.” He believes that through Peakhill’s sourcing & servicing abilities combined with Declaration’s expertise and capital resources will give them a competitive edge.
Sandor Biderman , Managing Director at Peakhill Capital U.S., expressed excitement about partnering with Declaration Partners stating that it perfectly complements their business model. He also believes that this collaboration will help them expand into the high-yield segment within the multifamily market.
Overall Summary:
Peakhill Capital has formed a joint venture with Declaration Partners in order to provide “gap capital” for residential rental property owners facing loan paydowns. The JV plans on funding preferred equity investments up to $25 million for various types of projects including multifamily housing and student housing developments. With an aim towards reaching $300 million in production over 12 months time frame; both companies believe they have found complementary partners which can offer unique advantages within this space.
