Bridge Investment Group Raises $1.6BN for its CRE-Backed Fixed-Income Strategy

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Bridge Investment Group, CRE, San Francisco, Bay Area

(EDITOR’S NOTE: The San Francisco Bay Area will be one of the targeted markets for the fund. All of the investments for the debt fund will be with existing assets. A typical size deal for the fund will be in the range of $20 million to $50 million. The leverage component on the fund will be 30 percent to 35 percent. The investors that contributed capital to the fund were a mixture of family offices, pension funds and sovereign wealth funds. These investors were based in the United Sttes and internationally in places like Europe, Asia and Australia.)

Bridge Investment Group LLC (“Bridge”) announced today that it has secured approximately $1.6 billion in equity commitments to be managed by its subsidiary, Bridge Debt Strategies Fund Manager LLC (“Bridge Debt Strategies”). Bridge Debt Strategies invests in select Freddie Mac securitization vehicles, including K‐ Series floating and fixed‐rate opportunities, select first mortgage floating rate loans, mezzanine loans and preferred equity. The strategy focuses on underserved parts of the CRE‐debt space and lends against asset types in which Bridge, Bridge Debt Strategies and their affiliates have significant operational capabilities, including multifamily housing, commercial office, and seniors housing and medical properties.

“The commercial real estate fixed‐income opportunity continues to provide exceptional risk‐adjusted returns in the current low interest rate environment, and our pace of deployment has accelerated in the first half of 2017,” said James Chung, Chief Investment Officer of Bridge Debt Strategies. “Our strategy has resulted in quarterly distributions that meet or exceed the targeted cash‐on‐cash returns and we are confident that our strategies will remain compelling through the investment period.”

“Investor demand has been substantial for our fixed‐income strategy” said Dean Allara, Vice Chairman and head of capital markets at Bridge. “The combination of a national operating footprint and highly developed local real estate knowledge, coupled with the credit market and structuring expertise of James Chung and his team, brings a differentiated approach to a complex market offering meaningful opportunity. We are gratified by the interest of our existing and new investors as we continue to pursue Bridge’s fixed‐income strategy.”

About Bridge Debt Strategies  
The principals of Bridge Debt Strategies collectively bring significant experience in commercial real estate (“CRE”) debt origination, pricing, and securitization and have successfully deployed approximately $1 billion into high‐yielding debt investments since the inception of Bridge’s first fixed‐income investment vehicle. The Bridge Debt Strategies team has grown to include 16 investment professionals who bring access to significant deal flow through longstanding industry relationships and a proven history of CRE lending through all cycles of the market. The team’s intensive and differentiated due‐diligence process leverages the expertise of Bridge’s experienced asset and property management teams, which offer local market insight to complement the investment team’s capital markets, structuring and origination capabilities.

About Bridge  
Bridge’s subsidiary fund management companies are registered investment advisers with approximately $7.4 billion of AUM. The principals of Bridge have been investing in real estate for 27 years, and have substantial success in the multifamily, commercial office, seniors housing and CRE‐backed fixed‐income sectors. Bridge’s subsidiaries manage private equity funds, separately managed accounts, co‐investments, and joint ventures. A vertically integrated real estate platform, Bridge and its affiliates employ over 1,000 people across 16 states and 50 metropolitan statistical areas. In 2017, Bridge was again named a Top 50 Private Equity Real Estate firm by PERE, a leading industry publication, moving up to #37 in the rankings. Bridge and its affiliates manage approximately 29,000 multifamily housing units, 6,200 senior housing units and 5.6 million square feet of commercial office space.

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