Fund VIII is the latest in a series of funds from Fairview that invest in senior secured private real estate loans. The fund will primarily target loans that are backed by real estate assets in the United States. Fairview is looking to take advantage of the current market conditions, which have created opportunities in the loan sale market and for the firm’s unique forms of real estate financing.
“We are seeing robust activity in the loan sale market, and also for our unique forms of real estate financing,” said Nels Stemm, founding principal at Fairview. “Distress in the market is widening out from office to other property types, and permanent lenders have begun to tire of extending their loans and are looking to clean up their balance sheets.”
Fairview has been investing in distressed debt and small- to mid-balance loans for nearly 15 years. The firm has a track record of acquiring and originating loans in these niche markets, and has been able to achieve equity-like returns without using leverage.
Fairview plans to invest Fund VIII’s capital across a diverse array of collateral types. The firm will also actively manage the loans in the fund’s portfolio in order to maximize returns. Fairview is targeting a four-to-six-year investment period for the fund.
In addition to its focus on distressed debt and small- to mid-balance loans, Fund VIII will also look to take advantage of the current market conditions. Fairview is seeing opportunities across a range of property types, as well as in the loan sale market.
With $75 million in anchor commitments, Fund VIII is already off to a strong start. The fund is on track to become the largest capital raise in Fairview’s history. The firm’s long-standing investment partners have shown strong support for the new fund, and have demonstrated confidence in Fairview’s ability to effectively invest the capital.
“We are incredibly grateful for the continued trust of our anchor investors,” said Carson Rasmussen, founding principal at Fairview. “These key commitments from our legacy partners reaffirm their confidence in our team and strategy. With a disciplined investment approach and proven history of results, we look forward to continuing to deliver on what we do best.”
Fairview has also been expanding its team and capabilities in recent years. The firm has added to its senior investment team, enhanced its servicing division, and intensively trained new investment analysts.
