Michigan-based White Oak Capital Holdings, LLC, dba as Oak Real Estate Partners, a national fund manager focused on the institutional investment sector, announced it has launched Oak Institutional Credit Solutions, LLC, a $500-million private real estate financing investment fund. The newly formed investment vehicle is the company’s first fund created specifically to serve the foundation and endowment investor class, though its affiliate company, Red Oak Capital Holdings, has previously delivered seven funds to the retail investor class. The latest fund is formed as a nonpublic offering under Rule 506(c) of Regulation D, which only permits investment from accredited investors.
Oak Real Estate Partners’ Gary Bechtel, Managing Principal and Chief Executive Officer, said, “The Fund will be focused on assets diversified across U.S. geographical regions and asset classes, to ensure effective portfolio diversification. The loans will be based on a property’s current and future value, with pricing based on the level of risk involved, with higher-risk projects’ carrying a higher interest rate and under typically more structured terms. Bridge loans are a compelling financing vehicle compared to other financing options, especially in situations where a property has below market occupancy rates, the borrower’s credit profile needs improvement and/or the borrower has an opportunity and needs to close in faster timeframe than possible with other traditional lenders.”
Oak Real Estate Partners’ strategy is to deliver a leveraged investment solution that is designed to align and support institutional investment objectives. The investment objective is to deliver an alternative return stream that enhances diversification, risk efficiency, and is uncorrelated to broader financial markets. The firm seeks to accomplish this by capitalizing on significant investment opportunities that exist in a highly fragmented, inefficient, and underserved small- to mid-balance lending market….
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