ACORE Capital Closes $556M Debt Fund

Along with its closing of $2 billion in separate accounts capital, the company now has a combined incremental lending capacity of up to $7 billion.
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ACORE Capital LP has reached the final closing of its first discretionary commingled real estate debt fund. ACORE Credit IV raised a total of $556 million, with a focus on originating and managing transitional/bridge commercial real estate debt investments in the U.S. Additionally, the company also closed $2 billion of separate account mandates, targeting similar CRE lending opportunities.

The investors in ACORE Credit IV reportedly comprise a diverse group of international institutions from North America, Europe, the Middle East and Asia, including public and private pension plans, insurance companies, investment advisers, foundations and family offices. The separate account investors are global insurance companies that prefer investing via separate accounts over commingled funds.

ACORE Credit IV has already made 19 investments representing about $308 million of fund equity capital committed and is about 62 percent committed (net of reserves). These loans are diversified by property type, geography and borrowers.

The fund reportedly intends to capitalize on ACORE’s established lending platform and industry relationships to source, originate, underwrite and asset-manage commercial real estate debt investments. Hodes Weill Securities LLC acted as the exclusive financial advisor and global placement agent to ACORE.

ACORE did not reply to Commercial Property Executive’s request for additional information. As of March 2019, the company had approximately $13.6 billion in assets under management.

Project in a hot tech market

Last month, ACORE provided a construction loan that was part of a $313.8 million package of acquisition and construction funding for an office development in Sunnyvale, Calif. A joint venture of Harvest Properties and Invesco Real Estate bought the project, with three office buildings and a development site, with the goal of demolishing two of the three buildings and replacing them with new Class A office space, supplemented by a fourth building, also Class A, on the vacant site. An existing Class B building will remain. Called Catalyst, the project will total about 588,000 square feet on completion.