What changed
Limekiln, a New York real estate credit shop, is selling its half of MF1, a large U.S. apartment lender it launched with Berkshire Residential. The sale will conclude their eight-year joint venture after originating roughly $32 billion in apartment loans. A statement said Berkshire Residential will take sole ownership of MF1 once the deal is complete. Limekiln's founder, Scott Waynebern, will continue as chief executive as he develops a new real estate strategy that is not focused on multifamily credit.
How MF1 funded loans
MF1 has long supported a substantial portion of its lending by turning apartment loans into commercial real estate collateralized loan obligations, a format that broadens the pool of investors who can back those loans.
Market backdrop
Conditions for apartment lenders are still not back to normal, but issuance has restarted even with rates remaining much higher.
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What this means for your portfolio
If Berkshire Residential completes the transaction, it would fully own MF1. For anyone tracking where property debt is loosening or tightening, who steers MF1 is worth watching.
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