Foundation Funding Group and Lion Creek Actual Property Capital have shaped a partnership known as BIG Lion. Below the phrases of the deal, Lion Creek will originate industrial actual property debt and fairness investments for Foundation, which is able to then carry out due diligence, underwrite, shut and handle the property.
The businesses aren’t any strangers to one another. The three principals of Lion Creek—Abe Katz, David Rosenberg and Mark Silbersher—have had a relationship with Foundation that dates again to 2009, having closed greater than $1 billion in transaction quantity collectively since then.
Foundation, based by Tammy Jones, invests in each debt and fairness methods, together with fixed-rate senior mortgage loans, bridge loans, mezzanine loans, most well-liked fairness, structured fairness, three way partnership fairness and B-piece investments. Foundation can also be an Optigo lender for Freddie Mac and DUS lender for Fannie Mae.
In 2023, Foundation shaped an origination partnership with affect funding platform Lafayette Sq., a nationwide funding platform geared toward creating funding alternatives in ignored locations and underserved markets.
Headquartered in New York Metropolis, Foundation is among the solely diversified industrial actual property funding platforms within the nation to be based and majority-owned by an African American girl.
CRE debt, fairness quantity recovering
Each debt and fairness investments picked up final yr, and industrial actual property buyers are actually extra optimistic than earlier than, although that’s nonetheless tempered considerably by uncertainty and dangers. Greater than half (54 p.c) of buyers surveyed by CBRE on the finish of 2024 anticipate general industrial actual property funding exercise to get well throughout the first half of this yr.
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Seventy p.c of surveyed buyers plan to purchase extra industrial actual property property than they did final yr, whereas simply fewer than 50 p.c plan to promote extra, CBRE discovered. Worth-add and core-plus had been the popular methods for roughly two-thirds of buyers. Then again, opportunistic, core, distressed and debt methods noticed notable declines from the earlier yr.
Mortgage originations for all main property sorts elevated within the fourth quarter of 2024 in comparison with the fourth quarter of 2023, the Mortgage Bankers Affiliation reported, with borrowing numbers enhancing as the price of capital declined.
There was a 124 p.c year-over-year enhance within the greenback quantity of loans for resort properties within the fourth quarter, a 105 p.c enhance for workplace properties, a 94 p.c enhance for industrial properties, a 72 p.c enhance for health-care properties, a 69 p.c enhance for multifamily properties, and retail property mortgage originations elevated 48 p.c in comparison with the fourth quarter of 2023, the group reported.
