Pearlmark Real Estate launches debt fund

Chicago-based Pearlmark Real Estate Partners has launched Pearlmark Mezzanine Realty Partners IV (Mezz Fund IV), a $600 million commingled fund. A final close for the fund is scheduled for June 2014. The debt fund will invest across property types.

Mezz Fund IV is part of a high-yield debt series. Its predecessor Pearlmark Mezzanine Realty Partners III closed in October 2008 with commitments totaling approximately $427 million. Mezz Fund III has assembled a diversified portfolio of loans to third-party owners of high-quality office, industrial, retail, residential, hotel, and mixed-use projects throughout the United States. The fund has made 35 high-yield investments through a variety of debt instruments, including mezzanine loans, B-notes and preferred equity.

Pearlmark Mezzanine Realty Partners II held a $300 million final close in 2005; the fund made 46 mezzanine loan investments more than $670 million; it is fully liquidated. Pearlmark Mezzanine Realty Partners I (Mezz Fund I) held a final closing in December 2002 with equity commitments of $151.9 million. Mezz Fund I made 34 mezzanine loan investments totaling more than $258 million; it is fully liquidated.

Since inception in 1996, Pearlmark has made more than 500 office, industrial, retail, multifamily and mezzanine loan investments nationwide, representing a gross investment of approximately $12 billion. The firm's current portfolio includes 40 office buildings, three retail properties and two industrial assets totaling approximately 13 million square feet, as well as 15 multifamily assets with approximately 4,100 units, and 27 mezzanine or preferred equity investments.