New Multifamily Fund

Two major commercial real estate players have teamed on a joint venture to provide gap capital for refinancing properties in the busy, busy multifamily sector. The initial seed money? $100 million. Also for today: Private real estate development and investment on campus is further separating successful colleges and universities from those struggling to stay open.

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Multifamily Investor Cortland Forms Prefered Equity JV With Declaration Partners

Multifamily investor Cortland is teaming up with David Rubenstein-anchored Declaration Partners Real Estate in a programmatic joint venture that will infuse gap capital for refinancing U.S. apartment properties, Commercial Observer can first report. The preferred equity JV, announced by the two firms Monday, will have initial capital of $100 million and target Atlanta-based Cortland’s key markets in the Sun Belt and Mountain West regions The partnership, which follows years of the firms investing together across multiple multifamily properties, aims to provide subordinate debt investments in the $5 million to $25 million range. “We believe this well-timed venture positions us to help satisfy the ongoing demand for so-called ‘gap’ capital from owners who are coming up short on proceeds when refinancing debt on their multifamily properties,” Jason Kern, Cortland’s president of investment management, said in a statement.

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Colleges Lean More on Commercial Real Estate Investment

Change has consumed college campuses in recent years — and not just over policies, protests and personnel. A confluence of institutional challenges has spurred design and development at the nation’s universities and colleges. These challenges include competition for students, the spread of satellite campuses, a long-term demographic shift that’s leading to an enrollment cliff, fresh sustainability commitments, and a challenging financing environment, including pullbacks in both federal and state funding. As these public and private institutions try to weather this financial storm, they’re increasingly looking at partnerships with for-profit developers as a solution. Considering the funding and deferred maintenance challenges schools face, many argue the quickest way to add vibrancy, retail options and amenities to a campus might be to partner with someone who can build them for you. Many schools have looked at leasing out space to developers, or have invited them to build directly on campus.

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