Samantha Rowan
Fundraising was slower compared with the same period last year, when managers raised $18.5bn.
The alternative lender has hired John Omori from Bank of Hope to spearhead the initiative, which will focus on smaller, local builders in the multifamily sector.
The firm is using this strategy as a yield play to mitigate against its bigger bets in the office and retail space.
Recent financing for ground-up developments include a $750m loan funded by Otera Capital for the first phase of Tishman Speyer’s Harvard University Enterprise Research Campus.
The Real Estate Capital USA Lending Barometer tracks non-securitized senior mortgage and mezzanine and preferred equity financings across markets and sectors.
Pension funds have committed $935bn to managers in the first half of this year.
Fixed-rate loans have increased in popularity following months of market volatility.
Basis Investment Group's Tammy Jones says commercial mortgage back securities offer a chance for higher yields in a risk-off environment, but the opportunity is transitory.
Sean Fulp, vice-chair and head of office capital markets for the Southwest at Colliers, believes technological and workforce changes mean previous business plans are no longer viable.
Lotus, a New York-based advisory, arranged the loan on behalf of Monroe Capital and Witkoff Group.