Chicago, IL (June 25, 2015) – Pearlmark Real Estate is pleased to announce the initial closing of its fourth highyield investment fund, Pearlmark Mezzanine Realty Partners IV, L.P. (“Mezz IV”). Mezz IV will serve as the firm’s exclusive mezzanine investment vehicle, fulfilling borrower demand for mezzanine debt solutions for refinancings, recapitalizations, acquisitions, and selective development projects. Consistent with the investment strategy of Pearlmark’s three previous mezzanine funds, Mezz IV is targeting a broad range of domestic commercial real estate assets through a variety of debt instruments, including mezzanine loans, the subordinate interests of A/B structured loans, preferred equity, and whole loans including bridge financing. Mezz IV will seek to generate a net internal rate of return of 10% to 12% to investors over a three- to five-year investment holding period. The initial closing for Mezz IV totaled over $50 million in commitments with an additional $25 million in capital already committed to subsequent capital closings expected to occur over the next year. Pearlmark is targeting a fund size in excess of $300 million with a hard cap at $500 million.
“Pearlmark’s Mezz IV is a continuation of our successful investment program that has provided $1.5 billion in mezzanine and preferred equity capital to best-in-class sponsors, investors, and developers of institution a commercial real estate assets nationwide,” stated Douglas W. Lyons, Managing Principal and Head of Debt Investments for Pearlmark.
In addition to backing from institutional investors and high net worth individuals for Mezz IV equity commitments,Pearlmark has complemented its investment strategies and program through its recently announced strategic partnership with Resource America, Inc., an asset management company specializing in real estate and credit investments that emphasize consistent value and long-term returns with an income orientation. Resource America,Inc. owns a 50% interest in Pearlmark, and together with its affiliates, has committed to investing significantly in Mezz IV and future Pearlmark funds.
Pearlmark CEO Stephen Quazzo added, “We are excited about the launch of this fund with our strategic partner, Resource America, Inc., and for the continued growth of Pearlmark’s investment platform. On a risk adjusted basis, now is an opportune time to be investing in the mezzanine space.”
Chicago-based Pearlmark is a private equity real estate investment firm that pursues domestic, value-added, and core/core-plus strategies through institutional commingled investment vehicles and separate accounts. Since its inception in 1996, the firm has made more than 500 office, industrial, retail, multifamily, and mezzanine loan investments nationwide, representing a gross investment of over $12 billion. Pearlmark and its partners, including insurance companies, public and private pension funds, foundations and endowments, banks, corporations, and high net worth individuals and families, have committed over $4.5 billion of equity capital to the firm’s investment activities. The company currently employs approximately 30 professionals. For more information, please visit www.pearlmark.com