Annaly Commercial Real Estate Group has provided a $592m loan to an affiliate of Blackstone Real Estate Partners (BREP) VIII — Blackstone Group’s $15.8bn global private equity fund — and partner Fairstead Capital for the purchase of a 24-building multifamily apartment portfolio in New York City.
A commercial real estate origination team recently joined Annaly from GE Capital Real Estate after the latter firm decided to exit its real estate business in April, unloading tens-of-billions worth of assets. Among them, BREP VIII bought all of GE’s remaining US properties for $3.3bn.
In a statement announcing the loan, Annaly said it capitalized on the existing relationship between its former GE employees and Blackstone.
“This transaction is another example of the progress we are making in growing our commercial real estate business through high quality institutional relationships,” said Kevin Keyes, president and incoming CEO of Annaly. “We will continue to utilize our balance sheet strength as a strategic advantage as we build out our commercial real estate platform.”
Blackstone, the world’s largest private equity investor in real estate, completed the reported $15.8bn fundraising of BREP III in March after its previous fund, Blackstone Real Estate Partners VII, raised $13.4bn in 2012.
Meanwhile, Blackstone’s commercial real estate lending business, Blackstone Real Estate Debt Strategies (BREDS), has kicked off capital raising for its next $4bn debt fund, as Real Estate Capital first reported today. The new vehicle, number three in the series, comes as the $4bn Fund II is all but fully invested.
The GE Capital Real Estate executives who joined Annaly Capital in April were led by Jeffrey Thompson, hired to expand the mortgage REIT’s commercial real estate originations platform.