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The fund has seeded a just-launched private debt strategy from an industry veteran.
While costs have been rising for the past decade, they are now having an impact on investment decision-making.
The New York-based manager has raised $1.3 billion for C-PACE lending series over the past 12 months, backed by appetite from insurance companies.
Rebranded from Real Estate Capital USA, we are repositioning to be at the center of a shift toward private credit lenders.
The CEO believes real estate private credit could become the biggest part of the Toronto-based manager’s global property business.
West Street Real Estate Credit Partners IV will have more than $7bn of lending capacity.
At a size of $1.4bn, ACORE Credit Partners II is also the joint fourth-largest private real estate fund closed globally so far this year.
The optimism comes as the commercial real estate debt markets gear up for an estimated $930bn of refinancing.
As banks seek to address commercial real estate exposure, alternative lenders are stepping in to acquire or help restructure loans.
The Chicago manager is looking to expand its single-family rental portfolio with a second $250m investment in the specialist platform.