Kawa announces an expansion of its dedicated commercial real estate (CRE) lending platform, aiming to deploy between $75 million to $150 million in CRE loans backed by high quality real estate at credit spreads raging from +500 to +1000 basis points.
Since the beginning of 2021, Kawa has experienced a significant increase in its ability to source and deploy capital into CRE loans at attractive credit spreads and backed by high quality real estate. As traditional lenders retrench their CRE lending programs amid generalized fears, Kawa’s expanded lending platform will look to take advantage of this current risk-reward opportunity.
“We take an opportunistic approach to our lending and adapt to cycles.” said Daniel Ades, Kawa’s founder and managing partner. “We feel that lending right now it is one of the better risk/rewards in the CRE space and we are seeing a good flow in niches where we feel we have a competitive advantage.”
Kawa’s expanded lending will focus on CRE loans with an implied basis that is believed to be sufficiently low to weather property value declines and real estate markets and asset classes that exhibit strong supply and demand fundamentals and/or barriers to entry
Since 2010, Kawa’s CRE Lending Platform has structured, originated or acquired nearly $500 million of CRE whole loans and mezzanine loans. The flexible financing platform has the ability to shift between real estate asset classes, geographies and positions in the capital stack as risk-reward dynamics evolve over cycles.
