Gauntlet CREC Raises $120 Million Dollars for Debt Investment

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Gauntlet Commercial Real Estate Capital closes on JV Agreement with discretionary fund for the purpose of lending $120 million dollars in the first half of 2011. The fund is focused on short term bridge opportunities in commercial real estate located primarily in CA, but other locations will be considered.

"The market needs a vehicle to take advantage of significant debt reductions"

Gauntlet Commercial Real Estate Capital, LLC (Gauntlet CREC) has successfully entered into a JV agreement to invest $120 million in short-term bridge loans throughout the western United States. Gauntlet will be identifying, analyzing and origination transactions with the private fund providing, administrative, underwriting and servicing support for writing the mortgages. The private equity fund is listed as an alternative investment vehicle on Fidelity, Schwabb, TD Ameri-trade and Pershing, Inc.

With the strategic partnership initialized to increase the capacity of Gauntlet CREC's short-term programs, jointly they have received total equity commitments of $120 million for funding senior and mezzanine asset-based financing for deployment in the first half of 2011.

Gauntlet CREC is now providing capital for the acquisition and refinance of single asset and portfolio transactions from through a streamlined process that can be completed in 10 days. Facilitating the acquisition of mortgages is a critical mandate for this fund because that particular niche represents a growing trend in commercial real eestate for 2011. "The market needs a vehicle to take advantage of significant debt reductions. Transactions with discounted debt as a component represent the fastest growing trend in commercial real estate" says Felix M. Gutnikov, Vice President.

Eligible properties for the program will range from multi-family, industrial, office, retail and hospitality to healthcare, mixed use and special purpose assets secured by real property or whole loans. Hotels and broken condo transactions will be strongly considered as those are very under served markets in CA right now. Debt transactions of $1 million to $15 million will have terms that range from 12 to 36 months at fixed, interest-only yields between 8.95% to 11.95% per annum.

Gauntlet CREC is delivering attractive rates and terms to borrowers and navigating the Western U.S. capital markets with cash in hand ready for investment. "We are already providing competitive, flexible short-term bridge financing with creative solutions for borrowers in unique or distressed situations. The new funds gives us increased autonomy and discretion over what transactions get funded." says Michael A. Clinton, managing director. The dedicated team at Gauntlet Commercial has consistently demonstrated their ability to identify opportunities to create and maximize value, while minimizing risk and providing a seamless process for both the investor and sponsor.

Gauntlet Commercial Real Estate Capital is a boutique investment banking firm that provides capital advisory services to commercial real estate investors throughout the United States and in select international markets.


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