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Prospect Ridge closes $800M CRE debt fund targeting reset valuations
The firm’s new Real Estate Debt Fund II targets about $3 billion in total lending capacity, financing first-mortgage, mezzanine, and preferred-equity deals across U.S. property sectors.
Prospect Ridge has closed its second commercial real estate credit fund, raising $800 million in capital commitments for the Prospect Ridge Real Estate Debt Fund II, Commercial Observer reports.
The new vehicle is designed to deploy first-mortgage loans, mezzanine loans, and preferred equity investments across the U.S., backed by roughly $3 billion in total lending capacity.
Prospect Ridge said the fund comes after higher interest rates and valuation resets in multiple property sectors, and it plans to lend below replacement cost while focusing on sectors where rent growth and occupancy remain strong.
In the interview, Robert Milne, managing director and co-head of credit strategies at Prospect Ridge, said the firm’s debut $500 million fund is fully deployed and almost fully realized, and it expects to stay active in lending over the next 12 months.