NEW YORK CITY – New York Life Real Estate Investors has closed its commingled, high yield real estate debt vehicle, Madison Square Structured Debt Fund.
The closed-end fund, secured nearly $500 million in committed capital, and will originate bridge loans collateralized by institutional-quality office, multifamily, industrial, retail and other niche sector assets in primary and secondary markets throughout the US.
The vehicle will originate roughly $1 billion of senior bridge loans in total.
“We believe that the new Madison Square Structured Debt Fund is well-positioned to deliver attractive, risk-adjusted returns for investors in the face of global turbulence and real estate market disruption driven by the current capital market dynamics,” states John Lippmann, head of structured debt at REI and portfolio manager for the fund.
As a significant milestone in REI’s third-party investment management business, the fund additionally assists New York Life in achieving further portfolio diversification.
“We continue to focus on creating geographically and sector diversified investment solutions that offer a compelling value proposition to investors,” says Paul Behar, head of business development at REI. “This program allows us to seek attractive current returns with a lower level of volatility, which resonates well with investors in the current economic environment.”