The metrics of underwriting an apartment property have changed substantially since the start of the covid-19 pandemic.
The firm has closed about $100m of new loans since opening its doors in May and all of them have been bridge financings.
The transaction represents Värde's conviction around the demand dynamics of the Silicon Valley housing market.
The reputation of the sponsor is emerging as a key factor for lenders of all stripes.
The firm, the debt financing arm of Slate Property Group, will target loans of more than $50m.
Bain Capital and TPG Angelo Gordon also have made strategic investments in private credit shops over the past month.
The credit manager is looking to build out a new portfolio in the space to complement its primary value-add strategy.
The manager reckons the current market dynamic is resulting in two key trends – one is acquiring loans directly from Fannie Mae.
The ongoing banking pullback is the building blocks for this activity, said Alan Purser, global head of capital formation.
Mitigants include a relationship approach to banking and exposure in well-known markets, said Joseph Scott, senior managing director at KBRA.