Tishman Speyer Debuts Debt Platform
Amit Rustgi will drive the company’s participation in high-yield loans secured by institutional real estate.
Tishman Speyer has formed a platform to originate commercial real estate loans tied to institutional-quality U.S. residential, industrial, life science, office and other mixed-use projects and portfolios in the country’s largest metros.
The scope of the diversified real estate giant’s debt-related activities will be expansive, with the platform designed to source, underwrite, acquire and manage a wide range of debt investments, including—but not limited to, the company says—whole loans, subordinate and mezzanine debt, preferred equity, construction loans and purchases of legacy loans or loan portfolios.
The platform will target qualified sponsors operating in industry sectors and geographic locations where Tishman Speyer has already developed an expertise. The company has closed more than $29 billion in financings across more than 130 transactions since 2011 and has more than 100 actively managed lender relationships.
According to a statement by Tishman Speyer CEO Rob Speyer, now is the right moment for nontraditional lenders to make money in the current real estate environment. The company declined to provide more detail about the platform, in response to a CPE query.
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Tishman Speyer is hardly along among major real estate companies expanding their presence in lending. About two years ago, RXR and Hudson Realty Capital launched a $2 billion lending platform. More recently, SL Green Realty and Peebles Corp. each ramped up their presence in debt finance through a number of new vehicles.
Tishman Speyer has tapped Amit Rustgi to head the new platform. Mostly recently, he was a vice president and portfolio manager focused on investments at Pimco, a global fixed income investment manager. Based in New York City, Rustgi reports to Tishman Speyer Global Head of Debt Randall Rothschild.
A new crop of lenders
CRE mortgage borrowing and lending is estimated to have totaled $429 billion in 2023, a 47 percent decrease from the $816 billion in 2022, according to the Mortgage Bankers Association, a response to the escalation of interest rates and the problematic state of the office market. The 2023 figure also represents a 52 percent decrease from the record $891 billion in 2021.
Speaking late last year, CBRE U.S. President, Debt & Structured Finance James Millon touched on the motivation to create new lending vehicles in the current high-rate, stressed times for commercial real estate. Most lenders are quite cautious, he said.
“There are some more opportunistic lenders out there—call them equity investors—who are looking at this as a moment in time to effectuate some pretty terrific returns,” Millon said. “So we’re seeing a lot of liquidity come off the sidelines from non-traditional sources.”
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