PERE Credit

This week in Term Sheet: • A big change is coming for PERE Credit. From June 1, we will take on a global remit. • Ares Management has raised roughly $850 million for its first closed-end real estate debt vehicle. • MONTICELLOAM, LLC has funded a $435 million loan for the acquisition of a portfolio of skilled nursing properties in Maryland. • Trepp, Inc. analysis shows banks remained selective on lending opportunities in the first quarter. Subscribe to get the latest real estate news straight to your inbox

A $435 million financing package for a 14-property skilled nursing portfolio signals growing lender conviction in healthcare real estate. MONTICELLOAM, LLC structured a $400 million bridge loan alongside a $35 million credit facility for a repeat borrower operating more than 115 skilled nursing and assisted living facilities across the US East Coast and Sun Belt. The deal represents a significant share of Monticello's $940 million in Q1 loan originations. The firm closed around $2 billion in healthcare real estate lending in 2025 and sees continued demand ahead, citing a structural supply-demand imbalance in skilled nursing driven by an aging population and high barriers to new construction. Read the full story on PERE Credit: https://okt.to/gFxSPa #PrivateCredit

Institutional capital is moving deeper into US residential real estate debt. A new Castlelake and Redwood Trust, Inc. JV targeting up to $8 billion in jumbo mortgages is the latest signal that private managers are building scaled, strategic positions in the residential sector. The deal comes as a widening US housing supply gap, now estimated at 4.03 million homes, and continued bank pullback are creating durable structural demand for private financing. EMCAP Financial and Smith Hill Capital are targeting more than $1 billion in originations over two years through a newly launched residential real estate debt platform. Bright Meadow is finding opportunity in agency MBS as the Federal Reserve continues to reduce its balance sheet. And Fidelis Investors completed its third rated RTL securitization in March, with the book oversubscribed despite wider spreads and a more cautious buyer market. As Brian Tortorella of Fidelis put it: "The RTL market is still seeing demand, but it is a different market environment than in January." Across strategies, the message is consistent: private capital has stepped in where banks have pulled back, and institutionalization of the asset class is accelerating. Read the full story: https://okt.to/6ad4FY #PrivateRealEstateCredit

This week in Term Sheet: • Private real estate credit managers are keeping a close eye on the US 10-year Treasury, with mid-term outlooks potentially needing to be retooled 📈 • Industrial Realty Group, LLC and Sachem Capital Corp. are merging to form an industrial sector origination and ownership platform • Värde Partners has closed its largest commercial real estate CLO to date, in a $1 billion transaction • Plus, more private real estate credit news and market developments, exclusively for subscribers 📰 Subscribe to get the latest real estate news straight to your inbox

"Recovery interruptus" – commercial real estate investors are spending more time on the sidelines SitusAMC's latest ValTrends report shows cash displaced CRE as the top asset class in Q1 2026, as geopolitical uncertainty in the Middle East stalled a recovery that had gained momentum through 2025. Transaction volume in January and February fell 20 percent year-on-year to $30 billion – the lowest level since April 2024. The share of investors holding steady rose from 63 percent in Q4 2025 to 70 percent in Q1 2026. But there are pockets of opportunity. Office is seeing renewed investor interest driven by repricing, hybrid work trends, and growing momentum around residential conversion. And according to SitusAMC's Peter Muoio, the capital is there – it's the conviction that's missing. "There is a lot of capital out there that is ready and able to go." Read the full story: https://okt.to/F5AJR7 #PERECredit

Värde Partners closes its largest CRE CLO to date at $1 billion. VMC 2026-FL6 marks the firm's 13th commercial real estate securitization, structured with Wells Fargo as lead bookrunner alongside Goldman Sachs, Morgan Stanley, and ATLAS SP Securities. The underlying pool covers 19 floating-rate mortgages backed by 40 properties across 16 states, with multifamily and industrial assets making up more than 66 percent of the portfolio. The deal carries a 30-month reinvestment period, an advance rate of 88.625 percent, and a weighted average spread of Term SOFR plus 1.91 percent at issuance. The close comes as CRE CLO issuance reaches $19.07 billion year-to-date through early May, roughly $7 billion ahead of the same period in 2025, per CRE Finance Council data. Read the full story: https://okt.to/K6jdxv #CRECredit

CPP Investments | Investissements RPC makes its first European real estate co-investment with a €400 million stake in Proudreed, Blackstone's French last-mile urban logistics platform. The deal gives CPP a significant minority stake in a 1.6 million square meter multi-let logistics and light industrial portfolio across France, with a target to grow the footprint to 2.2 million square meters. Tom Jackson, CPP's head of real estate Europe, says the pension is pursuing "creative ways" to gain exposure to priority sectors, with last-mile industrial assets a key thematic focus globally. Read the full story: https://okt.to/0kZB6t #privaterealestate

Brookfield and Qatar Investment Authority close a $1.9 billion CMBS refinancing for Two Manhattan West in Hudson Yards. The 10-year, fixed-rate, interest-only loan is priced at Treasuries plus 107 basis points and replaces a $1.5 billion construction loan. The deal marks Brookfield's third major CMBS transaction tied to its 7.2 million-square-foot Hudson Yards mixed-use development. The 2 million-square-foot tower is 96 percent leased across 20-plus tenants, including KPMG, DE Shaw and Cravath, Swaine & Moore, with a weighted average remaining lease term of 16 years. A consortium of six lenders originated the single-asset, single-borrower loan, with the sponsor taking $272.9 million in equity from proceeds. Read the full story: https://okt.to/Wb36QA #PrivateRealEstateCredit

Real estate has already been through its downturn. Now, private credit lenders are positioned to benefit from the recovery. A new report from Morgan Stanley Investment Management makes the case for real estate private credit as a defensive strategy in today's volatile environment. With the firm raising its 2026 inflation forecast to 3.2% and trimming its US GDP outlook, the metrics are pointing toward credit over equity. Read the full story on PERE Credit: https://okt.to/OwX6oi #RealEstateCredit

Roc360 has hit $20 billion in originations, and it is just getting started. The New York-based residential lender is mapping out its next phase of growth, targeting simultaneous expansion across both origination and fund management as the US housing shortage deepens. Since launching in 2014, the firm has funded more than 50,000 individual loans with an average loan size of around $400,000, underwriting roughly 2,500 and funding approximately 1,000 loans each month. Backed by institutional investors including Temasek which committed an additional $150 million earlier this year, Roc360 is leaning into technology and third-party originator relationships to scale further. Co-founder and CEO Maksim Stavinsky says the firm is looking to grow beyond its existing real estate credit footprint, with new products and capital formation strategies on the horizon. #PrivateCredit