Long-time partners Liberty Mutual Investments and RXR are expanding their relationship, with plans to pour $1 billion into providing credit solutions.
Particularly, the capital will focus on multifamily assets across the U.S., with the two leveraging three lending strategies: gap financing, platform and portfolio financing and construction financing.
Additionally, LMI is serving as the lead investor for RXR's $250 million investment-grade corporate bond financing, which New York Life is also a participant in. The loan is collateralized by a few revenue streams under RXR, altogether managing a gross asset value of $17.4 billion.
RXR sees a big opportunity in the market currently, as loan expirations loom.
“The market is undergoing a significant evolution, creating some of the most compelling opportunities we’ve seen in years. RXR’s vertical integration and operating expertise provide a distinct advantage in sourcing investments and managing risk," Scott Rechler, chairman and CEO of RXR, said in a statement.
"With a wave of low-interest loans maturing, we’re well-positioned to step in and deliver strong, risk-adjusted returns for our investors.”
In fact, Trepp recently noted that $120 billion in multifamily loans is set to mature over the next 18 months, with all featuring in-place debt service coverage ratios below 1.20x. Trepp Senior Manager of Research Thomas Taylor noted that this could create buying opportunities in the sector.
RXR's partnership with LMI dates back to 2010, where it has worked with its parent, Liberty Mutual Group. The duo has since broadened into lending strategies and a multitude of real estate investments.
Worldwide, LMI has invested over $100 billion in long-term capital. And in 2024 alone, RXR completed more than $1 billion in loan originations.
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