Port Washington-based BEB Capital has raised $150 million for its new credit fund for commercial real estate assets.
Called the BEB Credit Opportunity Fund, L.P, the credit fund is an extension of the company’s lending division BEB Lending, which was first launched in March 2020.
Through the new fund, BEB Credit will seek to generate attractive risk-adjusted returns, backed by diversified real estate loans to high-quality sponsors in the U.S., targeting a cap of $150 million, and projected net returns of 13 percent to 15 percent.
The loans sought by the fund will target industrial and multifamily assets and they will have a current average interest rate of 10 percent, according to Keyvan Ghaytanchi, chief investment officer of BEB Capital. The financing can be used for acquisitions, refinancing and renovations to industrial and multifamily properties.
“We believe that the current environment is favorable for deploying debt in the commercial real estate market, especially for private lending platforms,” Ghaytanchi said in a company statement. “Given the strict requirements around lending and the limited ability by regional banks to deploy as much debt as they have been accustomed to, this is the opportune time to launch this type of financing vehicle. We’re excited to play an important role in providing borrowers with private, quick, and creative financing solutions for commercial real estate assets in primary and secondary markets across the U.S.”
Lee Brodsky, CEO of BEB Capital, said BEB has invested in, owned, and managed commercial real estate assets for more than forty years.
“Following the success we’ve seen through our lending platform, launching a credit fund was a natural next step in the evolution of our firm,” Brodsky said in the statement. “We’re looking forward to leveraging our industry expertise and existing network to offer a new and differentiated investment vehicle within the market.”
In Dec. 2021, BEB announced a programmatic joint venture with Rockpoint Group, a real estate private equity firm, that will target an investment pipeline of up to $1 billion of industrial assets in the northeastern U.S., with a primary focus on Long Island. In Feb. 2022, BEB Lending surpassed $100 million in capital deployed, reaching that milestone in less than two years of operation. In 2023, as an active lender nationwide, the platform is aiming to deploy an additional $100 million by year-end.