AREFIN, formed in 2006, originates loans for development,redevelopment and repositioning, and invests in whole loans,B-notes and mezzanine loans. "The continuing credit crisis hascreated increased opportunity for us as both a buyer and originatorof debt," says Bradford Wildauer, Apollo partner who oversees thefirm's US debt investments. "We've experienced an increase in thenumber of opportunities presented to us with more attractivereturns and greater ability to structure terms that meet ourlending criteria."

Wildauer says ACC, the new vehicle, was formed to accommodatethe increased deal flow and to handle loan commitments up to $250million. "In managing AREFIN, we felt it was prudent to limit loancommitments and retained investment amounts for a singletransaction," he explains. "The new vehicle gives us the abilityand the flexibility to handle large portfolio transactions."Further comment on specific interests of the fund was unable to beanswered by deadline.

As GlobeSt.com reported earlier this year, AREFIN and M&TBank provided a $163.5 millionfloating-rate debt package to Taconic Partners and Square MileCapital for the $172 million purchase of 375 Pearl St., a 1.2million-sf office building known as the Verizon Building inManhattan. Apollo arranged for M&T Bank to provide $110 millionin senior debt financing.