LaSalle Enters Debt Sector With Latitude Management Stake
Latitude targets the middle-market segment and its focus has been on originating bridge loans for value add and transitional properties.
CHICAGO–LaSalle Investment Management has entered into an agreement to buy a majority stake in the $1.2 billion debt fund business of Latitude Management Real Estate Investors. The transaction, subject to customary closing conditions, is expected to be completed during the first quarter of 2019.
Latitude is a US-based commercial real estate lender that provides short term, floating rate loans against middle-market commercial real estate assets. Its primary focus has been originating bridge loans for value-add and transitional properties.
When the deal closes, the Latitude debt business will become part of LaSalle’s North America Private Equity platform, which comprises $21 billion of the company’s total $60 billion in assets under management and is led by Americas CEO Jason Kern. “Latitude’s lending model targets a differentiated market segment that has enabled them to grow significant share in the value-add, transitional asset space, while avoiding the risks associated with development lending or higher leverage strategies,” Kern says.
Latitude President and CEO Glenn Sonnenberg and Executive Vice President Chip Sellers, along with Managing Directors Brett Mayer and Craig Oram, will continue to lead the debt fund business and keep LMREI’s 20 employees in place. The senior management team of Latitude will retain a minority ownership position of LMREI.
DLA Piper acted as legal advisor to LaSalle. Berkshire Capital acted as financial advisor and Sheppard Mullin acted as legal advisor to Latitude.