CalSTRS forms real estate finance JV
3650 REIT, a national commercial real estate lending, investment and services firm, has formed a new joint venture with the California State Teachers’ Retirement System.
The joint venture is dedicated to 3650 REIT’s bridge and event-driven lending strategy and will include an initial $200 million commitment with an accordion feature for a potential total commitment of $500 million.
3650 REIT is a portfolio lender dedicated to originating, holding and servicing real estate–secured loans that are individually structured to meet the business objectives of its borrowers. Founded in April 2018, it is led by Jonathan Roth, Toby Cobb and Justin Kennedy. Its strategies include long-term, first-lien mortgages, bridge and event-driven financing, opportunistic investments and relationship-focused loan servicing and asset management.
“As a long-term investor, CalSTRS seeks opportunities with our trusted partners to generate an enhanced yield to the actuarial earnings rate assumption, thus maintaining our mission to secure the retirement benefits of California’s educators,” said Mike DiRé, CalSTRS director of real estate.
3650 REIT’s discretionary bridge and event-driven lending strategy originates senior and mezzanine loans and preferred equity commercial real estate investments without employing external leverage.
“Forming this partnership now with CalSTRS provides opportunities to target transitional assets with misjudged value, structural complexity or time sensitivity,” said Jonathan Roth, managing partner and co-founder of 3650 REIT.
The venture’s investment activities will target originating loans to well-capitalized sponsors seeking debt capital for properties located in prime U.S. markets. The loans will be for ground-up construction, recapitalizations, acquisitions and repositions where traditional capital is unavailable or not capable of fully satisfying the sponsor’s needs.
