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The Secured Lender

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November 14, 2024

Source: Pearlmark

CHICAGO, November 13, 2024 – Pearlmark is pleased to announce the second closing of its sixth high yield credit investment fund, Pearlmark Mezzanine Realty Partners VI, L.P. (“Pearlmark Mezz VI” or the “Fund”). Pearlmark Mezz VI now totals more than $300 million in commitments, including discretionary managed accounts, gaining on the traction of the first closing of more than $185 million in August 2024. Loan sizes are expected to range from a minimum of $5 million to $50 million or greater in combination with co-investment capital on larger loan sizes. Pearlmark Mezz VI anticipates a final close to occur in Q1 2025 and expects to exceed its $400 million target.

Pearlmark has originated over $2.1 billion across 162 high-yield debt and preferred equity investments over 23 years. Pearlmark Mezz VI targets subordinated debt investments, fulfilling borrower demand for gap financing solutions on recapitalizations, acquisitions, and development projects in the top 30 metropolitan areas nationwide with strong sponsorship. Pearlmark Mezz VI will primarily invest in multifamily and other adjacent sectors, including student housing, active senior, and build-for-rent communities, as well as in industrial/logistics sectors. The Fund will also consider investments in mixed-use, medical office, and grocery-anchored retail properties. 

Pearlmark Mezz VI’s predecessor, Pearlmark Mezzanine Realty Partners V, L.P. (“Pearlmark Mezz V”), is nearly fully committed through 25 investments in high-yield credit with one final investment pending. With continued focus in the middle-market space, Pearlmark has seen strong demand and transaction flow for this product, and the Fund is anticipated to close on three investments by year-end.

Doug Lyons, Managing Principal and Head of Debt Investments for Pearlmark, commented, “There continues to be strong appetite from institutional capital for attractive risk-return in our middle-market mezzanine market, and significant demand from sponsor/borrowers for the structured gap finance products Pearlmark offers.”

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About Pearlmark

Pearlmark is a Chicago-based investment firm that targets domestic core-plus to value-add real estate opportunities via commingled funds, separate accounts, and joint venture structures. Since 1996, the Pearlmark team has sponsored more than 15 real estate equity and debt investment programs and completed 588 real estate equity and debt transactions on behalf of investors, representing $5.9 billion in equity capital commitments, $14.4 billion in gross investment value, and 162 originated loans aggregating over $2.1 billion in commitments. Pearlmark is dedicated to creating value for its investors and offers a range of investment opportunities nationwide across various property types (primarily industrial and multifamily). For more information, please visit https://www.pearlmark.com

Media Contacts

Joshua Greenwald/Katrin Lieberwirth

jgreenwald@stantonprm.com/klieberwirth@stantonprm.com

(646) 504-7306/(646) 502-3548