Commercial property

RXR and Hudson Realty Capital Launch Joint Lending Transaction

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RXR and Hudson Realty Capital merge their lending activities to create RXR-Hudson, a strategic commercial real estate lending platform that plans to lend more than $2 billion over the next few years in sectors with high investor demand and favorable demographics, including housing, industrial and healthcare.

The lending platform, built on the strong 25-year track record of New York-based companies, is designed to achieve risk-adjusted returns through direct commercial real estate lending in major US markets. The two companies first joined forces in 2012 when they created a CRE lending platform focused on the New York tri-state market. At that time, companies were targeting financing deals in the range of $10 million to $50 million across the entire spectrum of commercial real estate assets.

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RXR-Hudson’s new lending platform will offer traditional lending, including bridging, mezzanine or preferred stock type investments to facilitate the acquisition, construction or recapitalization of real estate assets. The platform is reportedly targeting transactions in the range of $100-200 million. It would also direct some of the investments to Opportunity Zones, sustainability initiatives, as well as minority and women-owned businesses.

Both companies have experienced teams with a proven track record in real estate financing. To complement these team members and focus on scaling RXR-Hudson’s debt portfolio, Jason Kirschner was hired as Chief Financial and Capital Officer. Kirschner was previously senior vice president of finance and capital markets at Brookfield Real Estate Partners, where he was responsible for a debt portfolio of more than $20 billion for office, multi-family, hotel and development properties.

Creation of a national platform

Executives from both companies say RXR-Hudson will leverage compatible real estate and credit skill sets to create the national platform. For RXR, a leading real estate owner, operator and developer, RXR-Hudson will use this deep experience in complex projects and its national expansion into other major markets and combine it with the national origination network and expertise of Hudson in real estate financing.

Founded in 2003, Hudson is a CRE investment management firm that provides middle market deal sponsors across the United States with financial solutions across the capital stack. Since its inception, the firm has invested in transactions totaling over $4.5 billion in aggregate value.

RXR’s platform manages 84 properties and investments with an aggregate gross asset value of $22.4 billion. The Company’s portfolio includes approximately 30.3 million square feet of commercial properties and approximately 6,900 multi-family units in operation or under development.