We see things from the ground up. It’s how we find opportunity and manage returns.
Bridge Debt Strategies Fund Manager LLC (“Bridge Debt Strategies”) invests in commercial real estate-backed fixed income, offering attractive current pay and risk metrics. The opportunity to achieve enhanced risk-adjusted yields in this strategy is driven by a differentiated focus in underserved debt markets where Bridge employs local resources to analyze deals and can thus carefully manage risk. We bring an “owner’s mentality” to our efforts and only lend against assets we would be comfortable owning. Our primary investment focus is on Freddie Mac K-Series B-pieces and first mortgage lending on “value-add” opportunities.
We have been an active acquirer of Freddie Mac K-Series B-pieces since late 2014 and have developed a strong partnership with Freddie Mac. As a frequent purchaser, we have a significant portfolio and considerable forward pipeline of B-Pieces and generally acquire these securities through a direct placement process and not an auction. Freddie Mac is the largest U.S. multifamily lender, with highly conservative underwriting standards and an exemplary track record in multifamily lending.
We originate first mortgage loans to finance assets primarily in areas where we have operating capabilities: multifamily, office, and seniors housing. The first mortgage loans are LIBOR-based (floating) and are collateralized by properties in light transition where there is a “value add” opportunity. Given these properties resemble the type of assets our operating platforms invest in, we believe we have a distinct advantage in assessing the risk of these investments.
The Bridge Debt Strategies management team brings over 75 years of collective experience and worked together for a decade at a “bulge bracket” investment bank prior to joining Bridge. The team originated and securitized over $50 billion of loans in their previous roles.
Our acquisition and on-the-ground real estate expertise provides us with differentiated capabilities to assess the quality and risk of underlying collateral as well as the ability to step in and manage any collateral in distress. Our extensive property management operations which cover much of the U.S. allows us to due diligence collateral in an in-depth manner and incorporates our company’s knowledge of markets and market trends, assets, and the financial condition of owner/sponsors.
These asset and market capabilities, coupled with the securitized finance, structuring, and capital markets expertise embedded in our management team, provides Bridge Debt Strategies with a differentiated and enhanced approach to evaluating and capturing opportunities in the commercial real estate debt market while mitigating risk.
As of June 1, 2018, Bridge Debt Strategies has raised approximately $2.7 billion in equity capital, with 85 existing investments and loans on 1200+ properties.