RXR and Hudson Realty Capital are merging their lending operations to create RXR-Hudson, a strategic commercial real estate lending platform that expects to lend more than $2 billion over the next several years in sectors with strong investor demand and demographic tailwinds including housing, industrial and health care.
The lending platform, building on the New York-based companies’ strong 25-year track record, is designed to achieve risk-adjusted returns through direct commercial real estate lending across major markets throughout the U.S. The two firms first joined forces in 2012 when they created a CRE lending platform focused on the New York Tri-State market. At that time, the companies were targeting financing deals in the $10 million to $50 million range across the commercial real estate asset spectrum.
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The new RXR-Hudson lending platform will originate traditional loans including bridge, mezzanine or preferred equity-type investments to facilitate the acquisition, construction or recapitalization of real estate assets. The platform would be aiming for deals in the $100 million to $200 million range. It would also direct a portion of investments to Opportunity Zones, sustainability initiatives, as well as minority-owned and women-owned businesses.
Both companies have experienced teams with proven track records in real estate financing. To supplement those team members and focus on scaling the RXR-Hudson debt portfolio, Jason Kirschner has been hired as managing director of finance and capital. Kirschner was formerly senior vice president of finance and capital markets at Brookfield Property Partners, where he was responsible for a debt portfolio of more than $20 billion for office, multifamily, hotel and development properties.
Creating a National Platform
Leaders of both firms say RXR-Hudson will leverage compatible real estate and credit skill sets to create the national platform. For RXR, a leading real estate owner, operator and developer, RXR-Hudson will utilize that deep experience in complex projects and its national expansion into other major markets and combine it with Hudson’s national origination network and expertise in real estate finance.
Founded in 2003, Hudson is a CRE investment management firm that provides mid-market deal sponsors throughout the U.S. with financial solutions throughout the capital stack. Since inception, the company has invested in transactions totaling more than $4.5 billion in aggregate value.
RXR’s platform manages 84 properties and investments with an aggregate gross asset value of $22.4 billion. The company’s portfolio includes about 30.3 million square feet of commercial properties and approximately 6,900 multifamily units under operation or development.