BEB Capital (“BEB”), a leading investor and developer of industrial, office, and multifamily assets throughout the East Coast, announced today that it held the first closing of its first credit fund, BEB Credit Opportunity Fund, L.P, (“BEB Credit”), as an extension of its lending division, BEB Lending. Launched in March 2020, BEB Lending is a platform that provides private, quick, and creative financing solutions for commercial real estate assets in primary and secondary assets across the East Coast of the US. BEB Capital raised approximately $150 million of capital and debt commitments for the fund.
Through this fund, BEB Credit will seek to generate attractive risk-adjusted returns, backed by diversified real estate loans to high-quality sponsors in the continental US, targeting a cap of $150 million, and projected gross returns of thirteen to fifteen percent.
“BEB has invested in, owned, and managed commercial real estate assets for more than forty years combined, and following the success we’ve seen through our lending platform, launching a credit fund was a natural next step in the evolution of our firm,” said Lee Brodsky, CEO of BEB Capital. “We’re looking forward to leveraging our industry expertise and existing network to offer a new and differentiated investment vehicle within the market.”
BEB Capital has decades of hands-on real estate management and investment experience, particularly involving industrial assets in the Northeast region, and has been hyper-focused on strategic growth.
“We believe that the current environment is favorable for deploying debt in the commercial real estate market, especially for private lending platforms,” said Keyvan Ghaytanchi, Chief Investment Officer of BEB Capital. “Given the strict requirements around lending and the limited ability by regional banks to deploy as much debt as they have been accustomed to, this is the opportune time to launch this type of financing vehicle. We’re excited to play an important role in providing borrowers with private, quick, and creative financing solutions for commercial real estate assets in primary and secondary markets across the US.”
In December 2021, BEB announced a programmatic joint venture with Rockpoint Group, a real estate private equity firm, that will target an investment pipeline of up to $1 billion of industrial assets in the Northeastern US, with a primary focus on Long Island, NY. In February 2022, the firm announced BEB Lending surpassing $100 million in capital deployed, reaching that milestone in less than two years of operation. In 2023, as an active lender nationwide, the platform is aiming to deploy an additional $100 million by year-end.