
Realterm's Bold Move into Logistics Financing
In a significant step for the logistics investment landscape, Realterm has successfully closed its inaugural Logistics Credit Fund with an impressive $350 million in committed capital. This strategic expansion into direct lending aims to fill the current financing void in the industrial sector, particularly focusing on industrial outdoor storage (IOS) properties situated in transportation-advantaged locations.
Targeting Unique Investment Opportunities
Realterm endeavors to construct a portfolio of unique investment opportunities by entering the realm of senior mortgages and junior capital solutions. Paul Sisson, head of credit at Realterm, expressed confidence in the firm's capacity to navigate this niche. He stated that the firm leverages three decades of investment experience in the logistics sector to provide tailored lending solutions that are currently underserved by traditional lenders.
The Expanding Industrial Landscape
According to Realterm's analysis, the U.S. industrial and logistics market has nearly tripled in size and more than doubled its share of the overall real estate sector since 2008. While there is a rising demand for specialized financial solutions, traditional lending avenues often overlook smaller loan sizes and unique property types, which makes Realterm’s move especially timely.
Successful Initial Deployment
Demonstrating swift action, Realterm’s Logistics Credit Fund recently concluded its first loan, amounting to $70.8 million, securing an eight-property IOS portfolio held by GreenPoint Partners. This transaction, involving properties across major U.S. cities, marks a promising beginning for the fund’s ambition to address critical financing gaps in the logistics sector.
A Future with Promise
As the demand for logistics capacity continues to grow, Realterm's newly launched credit fund positions itself as a key financial player that is likely to attract further attention from both investors and the industrial sector. By focusing on an asset class that has exhibited robust operating fundamentals, the firm aims to establish itself as a trusted lending partner and drive growth in a dynamic market environment.
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