Berkshire Residential raises $ 1.5 billion for apartment debt fund

Berkshire Residential Investments has announced a final close of $ 1.47 billion for its debt fund, Berkshire Bridge Loan Investors II. The fund, which surpassed its target of $ 1 billion, has received commitments from nearly 60 institutional clients around the world and includes both new and existing investors for the company.

The fund supports the MF1 direct lending platform, which is a partnership between Berkshire and Limekiln Real Estate. MF1 provides financing for multi-family assets in the United States, including senior mortgages, mezzanine debt and preferred shares.

Last year, MF1 generated more than $ 2.3 billion in loans and was the largest contributor of multi-family loans to CLOs last year, according to Jon Pfeil, senior portfolio manager at Berkshire. MF1’s portfolio performed very well in the turbulent conditions presented during the global pandemic and had no defaults. We used this momentum to successfully raise capital for our second fund in this series, exceeding our goal of raising capital, ”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 multi-family real estate investor who executes a high yield multi-family securities strategy with other investors via Freddie Mac B-piece securitization control classes. Limekiln is also active in special real estate situations.