ACORE Capital Closes $1.4B CRE Debt Fund

The debt manager is eyeing opportunities created by reduced lending from other capital sources.

ACORE Capital LP, a leading U.S. commercial real estate debt manager, has reached the final close of ACORE Credit Partners II, which was oversubscribed with total equity commitments of about $1.4 billion.

Ryan Tower. Image courtesy of Ryan Cos.
ACORE Capital provided at least $125 million in construction financing for Ryan Tower in Plano, Texas. Image courtesy of Ryan Cos.

ACP II is the latest and largest in ACORE’s series of CRE credit funds focused on originating and managing transitional debt investments in the U.S. The fund reportedly received capital commitments from a wide group of global institutional investors, including U.S. pension plans, sovereign wealth funds, endowments and foundations, insurance companies and family offices.

According to a company statement, the increased cost and significant reduction in the availability of debt capital from traditional lenders creates attractive investment opportunities for ACORE.

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ACORE focuses on originating, acquiring and managing first mortgages, B-notes, mezzanine debt and preferred equity. Since its inception in May 2015, the company has originated about $40 billion in loans, and as of year-end 2023, it has about $20 billion in assets under management.

Wide-ranging deals

About a year ago, Commercial Property Executive highlighted one of ACORE’s deals, a $114 million refinance of an office property in Long Island City, N.Y., for borrower GFP Real Estate.

As of this past September, one of the few successful office developments to get underway in metro Los Angeles, in fact the largest non–owner-occupied project to start construction there last year, was The Bradmore Group’s 42XX project in Marina Del Ray. It was financed in part with mezzanine debt from ACORE.

Also in September, Ryan Cos. topped out its 23-story, 409,000-square-foot Ryan Tower in Plano, Texas. ACORE Capital provided at least $125 million in construction financing. In January, we interviewed Ryan Cos.’ Development Manager, Hank Biddle, about the features and amenities in the tower that are designed to entice employees back to the office. 

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