New York City-based investment and advisory firm Talmage has completed the $100m first closing of Talmage Total Return Partners, a new high-yield real estate debt fund.
The fund is targeting $300m in total investor commitments and will make opportunistic commercial real estate debt investments, including CMBS, whole loans, B-Notes, and mezzanine loans.
The capital commitment comes from an undisclosed institutional investor, with the fund so far closing two investments totaling $24m.
“Our ability to invest across the capital structure in the new issue and legacy markets allows us to uncover well-secured, asset-backed investments with current income that fulfill our strategy,” said Talmage CEO Edward Shugrue, in a prepared statement.
“We are excited about our latest investment vehicle, its tactical size and the opportunities available in the commercial real estate debt space, which has yet to fully recover from the financial crisis.”
Talmage, an investor, advisor and special servicer, has made more than $10bn of commercial real estate fixed income investments since 2003, also acting as special servicer and/or advisor for more than $40bn of loan restructurings and modifications.
The firm was recently named the special servicer on Deutsche Bank Securities’ $1.4bn, five-year floating rate CMBS loan, COMM 2014-KYO, which is secured by a portfolio of five full-service hotels and resorts totaling 4,016 keys located in Hawaii and California.
Shugrue is former CFO of Capital Trust, once chaired by Sam Zell and sold in part to Blackstone in 2012. He did not return calls seeking further comment.