Blue Light Capital launches new credit platform
US commercial real estate firm Blue Light Capital has launched a credit arm to fill a gap in the market as banks rein in their lending.
The firm has announced that Needham Point Capital’s Jeremy Burton and Tristine Lim have been appointed to lead the newly created Blue Light Credit.
Burton joins as a partner and head of originations, and Lim joins as head of credit and underwriting.
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Blue Light Capital said that the credit arm will fill a growing void in the middle-market commercial real estate lending market as $2tn (£1.6tn) in debt matures over the next three years. It also noted that bank lending has dropped by 55 per cent in the past year.
The new credit platform will specifically focus on originating bridge loans for both transitional and core assets, and on acquiring distressed notes ranging from $15m to $75m across all asset classes, which Blue Light said was “a strategic reaction to changes in the marketplace”.
Blue Light Credit is targeting $300m to $500m in deal volume in the coming year.
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“We are pleased to welcome Jeremy and Tristine, who have 36 years of collective experience originating and acquiring commercial real estate loans,” said Blue Light founder Michael Tepedino (pictured).
“Blue Light will provide critical liquidity to a host of different real estate sectors at a time when fewer lenders are active in middle-market financing.”
Blue Light also announced that it has partnered with real estate investment and development company RoeCo Holdings and RoeCo’s founder Greg Manocherian has joined Blue Light Credit as a partner.
Blue Light said that the partnership will enable its credit platform to more effectively execute on transactions, while also positioning the company to more effectively manage assets through distressed situations.
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Manocherian and his team bring more than three decades of real estate experience, including direct lending, acquisition, development and management of commercial and residential assets, Blue Light said.
“With Burton, Lim and RoeCo, we bring together the best of the best, combining long-term origination and credit capabilities with a deep understanding of the ownership side of the business,” said Tepedino. “We have added significant depth, expertise and a proven track record to the team, positioning the firm to fill the current liquidity gap in this marketplace.”
Blue Light Capital was founded in September 2023 to provide equity and debt capital solutions to real estate investors.