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 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 strategy consists of two primary components: Freddie Mac K-Series B-pieces, and first mortgage lending on transitional opportunities.
We are the largest acquirer of Freddie Mac K-Series B-pieces and have developed a strong partnership with Freddie Mac.
Over the past two years, we have been Freddie Mac’s largest counterparty in the K-Series B-Piece program. Furthermore, we 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 has an exemplary track record in multifamily lending.
Additionally, we originate first mortgage loans to finance assets primarily in areas where Bridge has 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 competitive advantage in assessing the risk of these investments.
Bridge Agency MBS Fund Manager LLC
Bridge Agency MBS Fund Manager LLC invests in residential mortgage-backed securities (“Agency MBS”) guaranteed by U.S. Government Sponsored Enterprises (“GSE”), in a proprietary structure designed to mitigate market dislocations and preserve principal. The GSE guarantee of principal and interest mitigates underlying borrower credit risk in the Agency MBS market. Bridge’s deep relationships with the GSEs dates back to the early 1990s.
As of Q3 2020, Bridge Debt Strategies has raised approximately $7.8 billion in equity capital, across 121 existing investments and 1300+* loans in the current portfolio.
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., allow 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.