Quadrant Real Estate Advisors is seeking to raise $700m for its Quadrant Enhanced Debt Fund, a core commercial real estate debt investment vehicle, Real Estate Capital has learned.
The investment advisor and manager has identified a group of US public pension funds who are seeking board approvals to commit $120m of capital for the fund’s imminent first close.
Quadrant’s 11th closed-end, private real estate debt fund will originate fixed-rate first mortgages for the acquisition, refinancing and recapitalization of core commercial real estate assets across the US. The firm will securitize the loans through the commercial mortgage-backed securities (CMBS) market, selling off the senior, lower risk classes and retaining the higher yielding junior ones.
Quadrant is best known for its investments in core commercial real estate assets. In May, for example, the firm provided a $38.3m long-term, fixed-rate loan to Brandolini Companies to refinance the Paoli Shopping Center in Paoli, a suburb of western Philadelphia, Pennsylvania.
The firm has $6bn of commercial real estate assets under management, investing in the US, UK and Australia via its Atlanta, London and Sydney offices.