Square Mile Capital/USAA Real Estate Loan Platform Aims for $1 Billion in Origination
WASHINGTON, D.C. – July 29, 2013 – (RealEstateRama) — Square Mile Capital Management LLC (“Square Mile”) and USAA Real Estate Company today announced the launch of a commercial real estate investment platform that will specialize in the origination and acquisition of high-quality secured real estate debt. The sponsors, which have already begun deploying the $300 million of capital that Square Mile and USAA Real Estate have committed to the platform, expect to invest as much as $1 billion in the U.S. by the end of 2014.
The Square Mile/USAA Real Estate initiative will be headed by Jeffrey Fastov, a 30-year commercial property finance and investment banking veteran who has joined Square Mile as Senior Principal. Mr. Fastov’s background includes leadership positions at Goldman Sachs, Credit Suisse and Oasis Real Estate Partners.
Square Mile will originate and invest in mezzanine loans and bridge loans as well as mortgages in which Square Mile will provide for the entire capital stack. Square Mile’s investments will feature high quality collateral with institutional ownership. Unlike a number of other commercial real estate debt platforms that have recently been launched in the marketplace, the Square Mile/USAA platform expects to originate loans to be held as portfolio investments rather than serving as collateral to be securitized as CMBS. The Square Mile/USAA initiative will utilize the more than 40 professionals located in eight Square Mile and USAA Real Estate offices throughout the U.S. who represent a full range of underwriting, structuring, asset management, legal, accounting and other professional disciplines.
Mr. Fastov commented, “With the ongoing recovery of the U.S. 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. Seasoned market players with access to substantial institutional capital are seizing that opportunity and will play a vital role in the marketplace going forward. I look forward to working with my new colleagues to build out this platform and fully execute the business plan.”
In a joint statement, Square Mile’s Managing Principals Craig Solomon and Jeffrey Citrin said, “The creation of this joint debt 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. With Jeff on board and serving as our firm’s head of debt origination, Square Mile is well positioned to fully meet borrower needs through our ability to invest across the capital stack, from first mortgages through equity.”
About Square Mile Capital Management LLC
Square Mile Capital Management LLC is a private investment firm based in New York that focuses on real estate and real estate-related opportunities, including both debt and equity investments on behalf of select institutional and private investors. Led by its Managing Principals Jeffrey Citrin and Craig Solomon, Square Mile takes a value oriented approach to its investment activities, with an emphasis on opportunities to acquire or capitalize assets or enterprises that are undervalued, overlooked, complex or mispriced. Since inception, Square Mile has invested nearly $2 billion of equity in approximately 100 distinct investments.
About USAA Real Estate Company
USAA Real Estate Company, with approximately $12 billion in assets under management, provides co-investment, acquisition, build-to-suit and development services for corporate and institutional investors. The USAA portfolio consists of office, industrial, multi-family, retail and hotel properties as well as investments in real estate operating companies. USAA Real Estate Company is a subsidiary of USAA, a leading financial services company, serving military families since 1922. For more information, visit www.usrealco.com.