RXR Realty and Hudson Realty Capital have launched a new lending joint venture.
The joint venture is a strategic lending platform designed to achieve risk-adjusted returns through direct commercial real estate lending in major U.S. markets.
RXR-Hudson plans to lend more than $2 billion in sectors including housing, industrial and health-related industries over the next few years, according to a joint statement.
RXR-Hudson will issue traditional loans, including bridging, mezzanine or preferred stock type investments to facilitate the acquisition, construction or recapitalization of real estate assets. The platform will also direct some of the investments to Opportunity Zones, sustainability initiatives, and minority and women-owned businesses.
“As RXR continues its national expansion into other major markets, RXR-Hudson is well equipped to capitalize on the rapidly changing trends stemming from the pandemic,” said Scott Rechler, RXR President and CEO, in the press release. “Hudon’s national origination network and real estate finance expertise, combined with RXR’s multidisciplinary franchise, will enable RXR-Hudson to find and execute a strong pipeline of opportunities in its targeted lending space. . »
Jason Kirschner, managing director of finance and capital, has been hired to focus on scaling RXR-Hudson’s debt portfolio. Kirschner was previously 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, multi-family, hotel and development properties.
“Our launch of RXR-Hudson marks another milestone for us as a company, building on what was a banner year in 2021,” said David Loo, co-founder and managing partner of Hudson, in the press release. “As we continue to see tremendous opportunities in the market, we look forward to working with RXR and its visionary management team to accelerate our growth.”
RXR now manages 84 commercial real estate properties and investments with a gross value of $22.4 billion. Its assets include approximately 30.3 million square feet of commercial properties, approximately 6,900 multi-family housing units in operation or under development, and development rights control for an additional 2,900 multi-family rental and for-sale units.
Founded in 2003, Manhattan-based Hudson Realty Capital has invested in transactions aggregating more than $4.5 billion across multifamily, office, industrial, retail, mixed-use and hotelier.