Seeks to achieve strong, risk-adjusted returns and capital preservation, focusing on attractive niches in commercial real estate debt that require specialized knowledge and sourcing advantages.

Invests primarily in Freddie Mac structured products and direct loan originations secured by assets in KA Real Estate’s sectors of expertise (Multifamily, Student and Seniors Housing, Medical Office, and Self Storage) with flexibility to selectively invest in non-agency CMBS.

Experience & Expertise

• Highly seasoned, cycle-tested senior leadership team with experience rooted in the commercial real estate debt and securities markets
• Active in all market cycles originating loans, investing in Freddie Mac bond issuances and structured products, and buying mispriced Freddie Mac and commercial real estate (“CRE”) bonds
• Ability to provide certainty of execution in short time frames through proprietary market intelligence, thorough underwriting process, and real estate operating experience

Sourcing

• Extensive network of partners, sponsors, investors, developers, operators, and money center banks leading to several lending partnerships and “first look” or off-market opportunities at attractive pricing
• As one of a limited number of Freddie Mac “Select Sponsors,” KA Real Estate has developed a $10 billion relationship with Freddie Mac as one of its largest borrowers and B-Piece buyers
• 25+ year relationship with investment banks/trading desks to access off-market/direct opportunities on new issue and secondary market CRE securities opportunities

Underwriting

• Conservative, equity-oriented underwriting with each potential investment flowing through a disciplined, multi-tiered evaluation and underwriting process
• Potential investments are evaluated on a loan-by-loan, ground-up analysis with a focus on intrinsic value and last dollar of risk
• Deep bench of experienced in-house investment and operations professionals who provide additional downside protection should the Fund need to take ownership of an asset

Operating Capabilities

• 80+ person vertically-integrated real estate team with in-house professionals specializing in law, finance, design and construction, acquisitions and asset management, and operations
• Operator-oriented platform and best-in-class operating partners with extensive experience in each asset class to support front-end due diligence in underwriting and ongoing asset management

Downside Risk Protection

• Debt investments secured by historically recession-resistant assets in the United States that have a low correlation to the broader economy
• Interest rate protection on floating rate investments to help ensure borrowers are able to service the debt in a rising interest rate environment
• Benefit from KA Real Estate’s sector expertise and operating capabilities should the need arise to take ownership and operate the assets