NEW YORK CITY-Square Mile Capital Management LLC and USAA Real Estate Co. have launched a CRE loan platform that expects to generate as much as $1 billion in originations by the end of next year. Leading the initiative will be Jeffrey Fastov, who has joined Square Mile as senior principal.
“With the ongoing recovery of the US commercial real estate market, I look forward to the opportunity to invest in high quality, high yield secured real estate debt as part of a platform that benefits from Square Mile's and USAA's deep real estate ownership experience,” says Fastov. “Seasoned market players with access to substantial institutional capital are seizing that opportunity and will play a vital role in the marketplace going forward.”
Locally based Square Mile and USAA, headquartered in San Antonio, TX, have already begun deploying the $300 million of capital they've committed to the platform. Square Mile will originate and invest in mezzanine loans and bridge loans as well as mortgages in which Square Mile provides the entire capital stack. The loans originated through this platform will be held as portfolio investments, instead of serving as collateral to be securitized as CMBS.
Square Mile's managing principals, Craig Solomon and Jeffrey Citrin, say the creation of the join platform “stems directly from the strategic alliance Square Mile established with USAA Real Estate just over a year ago. The Square Mile/USAA commercial real estate platform is a logical complement to Square Mile's longstanding opportunistic investment strategy.”
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