Los Angeles-based lender Calmwater Capital has received $600m in third-party funding and plans to deploy the lion’s share of it in 2015, the firm told Real Estate Capital.
The company secured credit lines from two global banks totaling $500m and a $100m equity investment from a university endowment.
Following a record-breaking 2014 and first quarter of 2015, the firm is intent on putting the new funds to work, setting a $500m lending target for 2015.
“These new investment partners allow us to expand the products we have been providing our clients for years,” said portfolio manager Larry Grantham.
Formerly known as Karlin Real Estate, the firm this week announced it would move forward as Calmwater Capital after spinning out from former parent company Karlin Asset Management.
The firm’s commitments jumped from $206m in 2013 to $360m in 2014. And the firm logged a record-breaking first quarter this year, providing six loans totaling $161m — more than double the volume from Q1 2014.
“These milestones demonstrate our continued growth and made this a good time for us to spin out,” Grantham said. “The challenge is expanding in an evermore competitive marketplace as we try to maintain high integrity and high underwriting standards.”
The company, founded in 2010 under the Karlin name, has originated more than $900m in senior and mezzanine loans on office, industrial, retail, multifamily, hospitality and land. As of March 31, the firm had $657m in assets under management.
Calmwater plans to expand its originations, underwriting and asset management teams, while top executives, including Grantham, CEO David Cohen and senior portfolio manager Matt Schwab will resume their roles.
The firm’s first quarter deals included a three-year (with two one-year extension options), $50m senior loan to IMH Financial Corporation to refinance the L’Auberge de Sedona and the adjacent Orchards Inn in Sedona, Arizona; and a five-year, $46m senior loan to Grand Heritage Hotel Group on The Stanley Hotel in Estes Park, Colorado.