SKW Funding and Bain Capital form $ 1.3 billion joint venture
SKW Funding and Bain Capital Credit have formed their second joint venture, targeting $ 1.3 billion in distressed real estate debt.
The new entity was part of the consortium of lenders behind a $ 410 million debt package for Nightingale Properties and Wafra Capital Partners to redevelop the old Citibank building at 111 Wall Street. The amount of the loan envelope was initially reported at around $ 500 million, but the joint venture confirmed the smaller figure with The Real Deal.
SKW and Bain Capital provided mezzanine financing as part of the capital stack, but did not disclose the amount.
The 111 Wall Street loan was one example of the role the joint venture can play in the pandemic downturn affecting some real estate sectors, said David DesPrez of Bain Capital.
“In debt capital markets, we are seeing fewer participating office lenders than when we were before Covid,” he said. “In a number of cases, we fill the void for these people. “
The main focus of the joint venture will be the acquisition of underperforming and non-performing loans and the issuance of loans in special situations in the greater New York market, but it will also seek opportunities nationwide. The company recently acquired a $ 42 million note secured by an office portfolio in Austin, Texas.
In July 2019, SKW – which was founded in 2014 by Wrublin family partners Dalan Management and HKS Advisors, Ayush Kapahi and Jerry Swartz – and Bain Capital teamed up for a company that resulted in nine transactions. His goal was $ 500 million.