The property developer RXR is partnering with One Investment Management to create a $500 million fund focused on rental housing in the Sun Belt cities.
According to a Bloomberg News report, the fund was built with traditional credit and structured equity. Its first project involved a $180 million project now under construction in Phoenix.
RXR has $18 billion in assets under management and 9,400 units in its multifamily portfolio. One Investment Management is a fund started by Rajeev Misra, who was previously the head of SoftBank’s Vision Fund. Misra told Bloomberg his fund was seeking structured credit opportunities.
The new fund’s launch comes at a time when lenders have shown declining enthusiasm in multifamily projects due to declining property values and an increase in nonperforming loans. RXR CEO Scott Rechler told Bloomberg his firm has the ability to finance distressed properties within the multifamily sector.
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