|Kearny Real Estate Company, in a venture with Morgan Stanley Real Estate Investing, has acquired a commercial real estate loan portfolio with an outstanding balance of $89 mil. It was purchased from an international financial services company.
The portfolio comprises 17 performing, sub- and non-performing loans secured by 1.65 msf of office, industrial and retail assets. The properties are located in California, Texas, Washington, Pennsylvania, New Mexico, Illinois, Oregon, Ohio, Tennessee and Florida.
In the last 20 months, Kearny has closed on more than $500 mil of loan acquisitions, according to Kearny Managing Partner Jeffrey A. Dritley. The company has a goal to acquire an additional $500 mil.
Loan portfolios are an important part of our acquisition strategy, which focuses on value add real estate, said Dritley. Kearny cut its teeth successfully working out $2 bil in troubled real estate loans in the early 1990s. “We feel we are only in the fifth inning of the current workout cycle and see plenty of opportunity where we can create value with our non- and sub- performing loans,” Dritley added.
Eastdil Secured represented both the buyer and seller in the transaction.