Beverly Hills, California-based Latitude Management Real Estate Investors has closed its latest first mortgage bridge loan fund on more than $404 million in equity commitments. With leverage, Latitude Management Real Estate Capital (LMREC) III will originate approximately $800 million in flexible, short-term loans to reposition and stabilize real estate assets.
LMREC III, which launched in 2010 and held its first close in September 2012, had an initial target of $400 million and a $550 million hard cap, according to firm president Glenn Sonnenberg. In April 2013, PERE reported on an interim close for the fund, which had brought in $242.2 million at the time. Latitude used placement agent Wren Capital to assist in securing commitments for LMREC III.
Latitude brought in commitments from such institutional investors as the Pennsylvania Public School Employees’ Retirement System, which contributed $75 million in late 2012, and the Ohio Bureau of Workers' Compensation, which committed $50 million in February 2013. Most recently, the Illinois State Board of Investment committed to a $30 million investment in the fund last month.
LMREC III originated its first loan in December 2012 and has since closed on more than $400 million in loans across 17 states. To date, the fund is approximately 40 percent invested and has drawn 40 percent of its committed capital.
“The ability to close more than $400 million in just over a year has been a product of our transparent closing process and reputation for sticking to transactions from beginning to end,” said Craig Oram, the managing director who leads originations at Latitude, in a statement.
LMREC III originates first mortgage bridge loans in the $5 million to $30 million range against traditional property types with value-added potential in primary and secondary markets nationwide. Its predecessor, LMREC II, implemented the same strategy for more than 100 loans in 22 states.
“We have assembled a team whose quality underwriting, asset management and relationships with the mortgage banking community allow us to close loans quickly and provide flexible and practical solutions for our borrowers,” added Sonnenberg in a statement.