Strategies

Pearlmark sponsors high-quality investment programs for institutional and high net worth investors, with a focus on three key strategies.

Within each strategy, Pearlmark invests in core and value-add opportunities. The firm's expertise includes the major property types (retail, office, industrial, multifamily). Geographically, we focus on primary markets and select opportunities in secondary markets with attractive fundamentals. Investors access our strategies through a variety of structures, including commingled funds, separate accounts, joint ventures and programmatic arrangements.

Pearlmark always offers prospective investors the option of developing customized separate account, joint venture and programmatic arrangements. Our current active commingled fund product, Mezzanine Realty Partners IV, is available to investors until December 2016.  

Commercial

Since 1996, Pearlmark has invested over $2.5 billion in equity on behalf of our commercial strategies, targeting institutional-quality office, industrial and retail assets across the U.S. We focus on select primary and secondary markets where we identify appropriate capital market liquidity, positive demographics and employment trends, and opportunities for value creation.     

Commercial Investment Criteria

Risk-Return Styles

Core/core+ and value-add

Product Offerings

Separate accounts, direct equity, joint and programmatic ventures

Investment Targets

Retail Focus
Development-constrained, in-fill suburban and urban trade areas

Industrial Focus
Primary regional warehouse/distribution facilities; port locations; net lease in strong markets

Office Focus 
Class A/B office properties located in primary markets

Target Markets

Major U.S. Metropolitan areas and select secondary locations

Hold Period

Average of 3 to 5 years; core properties may be held longer

Leverage

Up to 65% LTV / LTC

Transaction Sizes

$20 to $150 million (gross)

Multifamily

Since 1997, Pearlmark has invested in approximately 50,000 apartment and residential units in major metropolitan areas across the U.S.  Our multifamily strategy focuses on investments offering attractive income and growth potential, as well as selectively targeting value-added and development opportunities. 

Multifamily Investment Criteria

Risk-Return Styles

Core/core+ and value-add 

Product Offerings

Separate accounts, direct equity programs, joint ventures/co-investments

Investment Targets

Class A/B  in urban and suburban locations
High-rise, mid-rise and garden-style properties

Target Markets

Southeastern/Southwestern U.S.

Transaction Sizes

$15 to $100 million (gross)

High-Yield Debt

Since 2001, Pearlmark has originated over 125 debt investments totaling approximately $1.6 billion on behalf of our mezzanine debt fund series and joint venture programs.  Our debt platform makes investments across the major property sectors using a variety of instruments, including mezzanine loans, subordinate interests of A/B structured loans, preferred equity, whole loans and bridge financing.    

High-Yield Debt Investment Criteria

Risk-Return Styles

Core/core+, value-add, development

Product Offerings

Mezz Fund IV, separate accounts, joint ventures/co-investments, loan participations

Debt Structures

Mezzanine loans, preferred equity, B-notes, whole loans

Investment Targets

Multifamily, office, industrial, retail, hotel, student housing, medical office, mixed-use

Target Markets

Major U.S. Metropolitan areas and select secondary locations

Loan Amounts

$4 to $100 million; larger for portfolio transactions

Target Rates

9% to 12% coupon for existing  investments; 11%+ for construction

Loan Types

Fixed or floating rate

Fees

1% origination fee to Pearlmark; exit fees vary

Mezzanine Realty Partners Fund Series

Beginning in 2001 with Mezzanine Realty Partners Fund I, Pearlmark has sponsored four closed-end mezzanine debt funds focused on originating loans for real estate assets.  The most recent vehicle, Mezzanine Realty Partners IV ("Mezz IV"), launched in 2015 and is open to investors until December 2016.

The Mezz IV investment strategy focuses on core and value-add opportunities in growing markets and/or high-barrier-to-entry locations. Mezz IV also selectively considers construction mezzanine loans or preferred equity investments in well-conceived development projects with strong sponsors.

As with prior funds in the series, Mezz IV seeks to provide investors with the ability to earn current income through regular distributions from debt service payments, and realize what Pearlmark believes to be attractive risk-adjusted total returns with strong capital preservation characteristics.  

For additional information on partnering with Pearlmark on origination opportunities, or investing in the fund, please contact Doug Lyons at dlyons@pearlmark.com