NEW YORK CITY—A Cantor Fitzgerald subsidiary isacquiring Ranieri Real Estate Partners'distressed-loan manager, RREP Recovery Partners ManagerLLC. RREP and the investment fund it manages will nowbecome part of Cantor Real Estate L.P. and will beled by the team of founding partners Jon Vaccaroand Eric Schwartz. Deal terms were notdisclosed.

For Cantor, the acquisition extends its reach into the middlemarket of commercial property lending, a spokeswoman told Bloombergon Thursday. Further, she said, it “opens up opportunities to bringadditional sources of capital to the business, from clients thatwouldn't otherwise be a part of the firm.”

Howard Lutnick, Cantor Fitzgerald's chairmanand CEO, says the RREP acquisition reflects “the continued growthof our real estate and asset management businesses and investments.We are confident that RREP Recovery Partners' highly respected teamwill complement our seasoned management and strengthen our rapidlygrowing real estate investment management platform.”