Bridge Lender Lines Up Capital
ACRES Capital, a high-yield lending shop launched two years ago by a former Arbor Realty executive, has received at least $250 million of capital from a U.S. insurer.
The commitment positions the Jericho, N.Y., firm for rapid expansion. ACRES targets the origination of bridge and mezzanine loans, mostly in the range of $3 million to $25 million. It lends on all types of commercial properties, with a focus on the multi-family sector. The shop targets solid properties in secondary and tertiary markets, although it also considers major markets. Loan-to-value ratios can run as high as 90%.
The buzz is that the unidentified backer will provide between $250 million and $350 million.
ACRES chief executive Mark Fogel was a senior vice president and head of asset management when he left Arbor, a Uniondale, N.Y., REIT, in late 2009. He founded ACRES in 2012, and the next year recruited Marty Reasoner as a principal. Reasoner had just finished a 15-year career as a National Hockey League player, his last two seasons with the New York Islanders. He also was a partner in a residential investment firm.
Fogel and Reasoner spent much of last year lining up capital sources, including a hedge fund. Lending began in earnest this year. Meanwhile, Michael Bellissimo and Michael Bank, also former Arbor executives, joined ACRES as executive vice presidents. Bellissimo is chief credit officer and Bank oversees asset management.