Principal Real Estate Investors, the real estate group of Principal Global Investors, and Macquarie Group, are creating Principal Commercial Capital, a lending platform focused on originating and securitizing commercial mortgages in the commercial mortgage-backed securities (CMBS) market.
The partners will jointly manage the nationwide lending platform. Principal will source, underwrite, close and service loans. Macquarie will provide funding and capital markets expertise.
“We are very excited to launch this platform and expand our presence once again in the CMBS market,” said Margie Custis, managing director for Principal Real Estate Investors.
“This venture will enable Principal Real Estate Investors to offer a wider menu of options for our borrowers and leverage the strengths of both firms.”
Timothy Gallagher, Managing Director and Head of Commercial Real Estate Markets at Macquarie, said both firms have complementary teams and areas of expertise.
“Our shared vision and discipline differentiates us from other CMBS lenders, and we look forward to serving both borrower and investor clients,” added Gallagher.
Principal Real Estate Investors, through its affiliates, has a lengthy track record as a CMBS loan originator and seller.
The firm has contributed almost 2,000 loans totaling more than $16 billion to more than 50 securitizations, including the TOP and PWR shelves.
Macquarie has recently hired a team of CMBS veterans, led by Gallagher, to expand its presence in the U.S. commercial real estate market.