Principal Real Estate Investors and Macquarie Group have joined forces, launching a lending platform focused on originating and securitizing commercial mortgages through the CMBS market.
Principal Real Estate Investors will source, underwrite, close and service the loans, while Macquarie will provide funding and capital markets expertise.
A spokesperson for Principal told Real Estate Capital the new platform will focus on all major property types nationwide, with loan terms typically in the five- to 10-year range and loans between $5m and $100m.
The firm has a track record as a CMBS loan originator and seller, having contributed almost 2,000 loans totaling more than $16bn to more than 50 securitizations.
Margie Custis, managing director for Principal, said in a written statement that the new venture will enable the firm to “offer a wider menu of options for our borrowers and leverage the strengths of both firms.”
Macquarie has recently hired a team of CMBS veterans, led by Managing Director Timothy Gallagher, to expand its presence in the US commercial real estate market.
“Our shared vision and discipline differentiates us from other CMBS lenders, and we look forward to serving both borrower and investor clients,” he said.
Principal Real Estate Investors manages or subadvises $52.6bn in commercial real estate assets. Macquarie, a global provider of banking, financial, advisory, investment and funds management services, is focused on generating returns for institutional, corporate and retail clients. It holds US$396bn in assets under management.