Peakhill Capital, a leading commercial real estate lender, has recently announced a strategic joint venture with Declaration Partners, an established investment firm. This partnership aims to provide “gap capital” to owners of residential rental properties who are facing loan paydowns.
The newly formed JV will focus on funding preferred equity investments ranging from $5 million to $25 million in various types of projects such as multifamily buildings, student housing complexes, and build-for-rent developments (BFR). By offering this type of financing support behind agency loans and other forms of debt like LifeCo and CMBS loans, the JV seeks to assist asset owners in meeting their financial obligations.
In the next 12 months alone, Peakhill Capital has set a goal for production reaching up to $300 million. According to Todd Rich – Co-founder of Declaration Partners and head of their real estate team – many multifamily property owners are currently facing demands for loan paydowns from their lenders. He believes that by combining Peakhill’s sourcing & servicing capabilities with Declaration’s capital resources and expertise in the industry will give them a competitive edge.
Sandor Biderman – Managing Director at Peakhill Capital U.S. – also expressed his enthusiasm about partnering with Declaration Partners as it perfectly complements their business model while expanding their reach into the high-yield segment within multifamily properties. This collaboration is expected not only benefit both companies but also provide valuable opportunities for investors looking into equity investments within this market sector.
