Berkshire Residential Investments announced a final close of $1.47 billion for its debt fund, Berkshire Bridge Loan Investors II. The fund, which exceeded its $1 billion target, received commitments from nearly 60 institutional clients around the globe and includes both new and existing investors for the firm.
The fund supports the MF1 direct lending platform, which is a partnership between Berkshire and Limekiln Real Estate. MF1 provides financing for multifamily assets in the US, including senior mortgages, mezzanine debt and preferred equity.
Last year MF1 originated over $2.3 billion of loans and was the largest contributor of multifamily loans to CLOs last year, according to Jon Pfeil, senior portfolio manager at Berkshire. MF1’s portfolio performed very well during the turbulent conditions presented during the global pandemic and had no delinquencies. We used that momentum to successfully complete the capital raise for our second fund in this series, surpassing our capital raise goal,” he said in prepared remarks.
Berkshire Residential Investments is a vertically integrated residential real estate investment and property management company. As of December 31, 2020, it had approximately $11.5 billion in real estate assets under management.
Limekiln Real Estate is a multifamily-focused real estate investor that executes a high yield multifamily securities strategy with other investors via controlling classes of Freddie Mac B-piece securitizations. Limekiln is also active in real estate special situations.