#None #Chicago #LaSalle Investment #Real Estate Debt #Capital Commitments

LaSalle's Real Estate Debt Strategy Secures $700 Million in Capital

In a significant development in the realm of real estate investment, LaSalle Investment Management, a prominent player in global real estate, announced that it has successfully attracted around $700 million in capital commitments for its open-ended real estate debt strategy. This ambitious initiative has garnered interest from a diverse array of institutional investors, including pension funds and insurance companies from regions including the U.S., Australia, Canada, and Asia.

Managed by LaSalle's seasoned U.S. debt team, which boasts over $6 billion in first mortgage transactions in the past 20 years, this strategy is designed to target floating-rate senior loans ranging from $25 million to $75 million. The focus will be on multifamily and multi-tenant industrial properties situated in growth markets and key gateway cities throughout the United States.

Since the inception of this open-ended strategy in March, the LaSalle team has already originated and closed over $400 million in loans, with expectations to close an additional $300 million in the upcoming third quarter, buoyed by a strong pipeline of opportunities. The leadership sees the current market landscape as favorable for private real estate debt strategies, particularly given the heightened capital needs and tighter bank lending conditions, alongside stabilized interest rates and a considerable adjustment in real estate pricing.

Brad Gries, Head of Americas at LaSalle Investment Management, expressed confidence in the strategy's approach. He stated, "Our team of experienced real estate lending professionals has demonstrated a long history of success, and we appreciate the vote of confidence from our investors. In light of the recent volatility and uncertainty precipitated by policy decisions and geopolitical factors, we have observed increased demand from borrowers and credit investors, paving the way for a robust deployment environment that offers attractive risk-adjusted returns. We firmly believe in the vital role of real estate credit in diversified investment portfolios."

Craig Oram, Portfolio Manager at LaSalle, highlighted the implications of this significant capital raise. "With the funds secured, we are in an excellent position to seek loans for light transitional properties across the nation. There is a tremendous demand for capital among middle-market borrowers, and our rigorous approach to ground-up underwriting, coupled with an integrated origination strategy, enables us to provide essential liquidity in this dynamic market climate."

The accomplishment of raising approximately $700 million marks yet another pivotal achievement for LaSalle's global real estate debt platform. This milestone is a testament to the firm’s successful fundraising activities, which have accumulated more than $1.7 billion in capital over the previous year across various investment strategies, including open-ended, closed-ended, and custom account strategies.

While LaSalle's latest strategy reflects strong investor confidence, it also underscores the evolving landscape of real estate finance, where the adaptability of investment strategies can create significant opportunities in changing market conditions. As the company continues to execute its focused strategy, the implications for both investors and the real estate market at large will be closely monitored moving forward.

LaSalle Investment Management is recognized as a leading global real estate investment manager, managing assets worth over $82 billion across various private and public equity and debt investments as of Q4 2024. The firm serves a diverse client base ranging from public and private pension funds to insurance companies and private individuals worldwide. By providing a full spectrum of investment vehicles, LaSalle aims to meet the varying needs of institutional and individual investors in the dynamic real estate market.