Mesirow launches new business line: Mesirow Realty Bridge Equity to provide short-term bridge equity to best-in-class DST sponsors
Mesirow Realty Bridge Equity (MRBE) will leverage its management team's deep industry relationships and 100+ years of aggregate experience
New capability benefits from Mesirow’s balance sheet strength and deep alternatives expertise
- MRBE commits $25 million to its first bridge equity investment
CHICAGO, January 25, 2023 - Mesirow, an independent, employee-owned financial services firm, today announced the launch of Mesirow Realty Bridge Equity (MRBE). This new serial investment vehicle provides short-term bridge capital to best-in-class Delaware Statutory Trust (DST) sponsors to fund their acquisition of first-rate commercial real estate property in anticipation of a DST syndication process.
MRBE recently invested approximately $25 million in its first bridge equity investment under this new investment platform, supporting the acquisition of a high-quality real estate asset by a first-rate DST sponsor. MRBE’s management team comprises principal real estate investors with an established track record of more than $8 billion of completed transactions.
“We are excited to offer best-in-class sponsors this new and distinctive approach to DST bridge equity,” said Daniel Nyhan, Managing Director and Co-Head, Mesirow Realty Bridge Equity. “Mesirow has a well-established reputation in the DST market, and expanding into a bridge capital provider makes good business sense. Utilizing our experience as a principal real estate equity investor, our approach provides DST sponsors with unparalleled technical expertise to complete the financing in conjunction with the certainty of closing with an institutional partner. Indeed, Mesirow’s recent $25 million bridge equity investment signifies MRBE’s confidence in both a DST Sponsor and the future success of the DST Sponsor’s business plan.”
Along with a deep understanding of the DST marketplace, the MRBE management team offers substantial experience in capital markets transactions and management operations of commercial real estate properties. The MRBE investment platform is currently focused on investing in Hospitality, Industrial, Multi-Manufactured, Office (including Medical Office), Retail, and Self-Storage. The team has longstanding relationships with the most well-regarded DST Sponsors and will apply its knowledge of commercial real estate and the DST market to quickly and successfully underwrite assets and mitigate potential downside risk.
“MRBE’s launch is a natural outgrowth of Mesirow’s entrepreneurial culture and the firm’s expertise in alternatives and Sale-Leaseback Capital,” said Natalie A. Brown, CEO of Mesirow. “We look forward to thoughtfully growing this capability over time through additional transactions and headcount as we assist clients in realizing their financial objectives.”
Brown concluded, “Mesirow is purposeful in the markets we enter. Our Board of Directors and business line leaders recognize the benefits of offering products and services that can be countercyclical to particular market dynamics. A diversified offering helps us present the best opportunities for our clients relative to risk mitigation and provides us with more uncorrelated growth opportunities.”
A Delaware Statutory Trust (DST) is a legal trust created under Delaware law in which each investor owns an undivided fractional interest in a commercial property. The DST structure allows accredited investors to purchase fractional interests in a commercial property, receiving all the benefits of property ownership without any of the burdens of property management. According to Mountain Dell Consulting, the preeminent DST consulting firm, the DST market has grown significantly from raising $1 billion in 2015 to $8.66 billion in equity raised through the end of November 2022.
With the growth of the DST industry, DST Sponsors have outgrown their historic financing capacities. They are now seeking proven, credible and reliable sources of capital to fund new DST projects creating an opening for Mesirow to establish a complementary business originating alternative investment opportunities.
Mesirow Realty Bridge Equity’s management team has more than 100 years of combined experience sourcing and creating commercial real estate transactions for its account, as well as substantial experience in capital markets transactions and management operations of commercial real estate properties, including a comprehensive understanding of the DST marketplace.
Mesirow is an independent, employee-owned financial services firm founded in 1937. Headquartered in Chicago, with locations around the world, we serve clients through a personal, custom approach to reaching financial goals and acting as a force for social good. With capabilities spanning Global Investment Management, Capital Markets and Investment Banking, and Advisory Services, we invest in what matters: our clients, our communities, and our culture. To learn more, visit mesirow.com and follow us on LinkedIn.
Mesirow was recently named one of the Best Places to Work in Chicago by Crain’s Chicago Business and one of the Top 100 RIA firms by Barron’s.
The information contained herein is intended for informational purposes only and is applicable to Qualified Purchasers only. This is not an offer or sale of securities. Securities are only offered to Qualified Purchasers. Financing terms are determined on a case-by-case basis and will vary according to suitability. Securities offered through Mesirow Financial, Inc., member FINRA, SIPC. The Mesirow name and logo are registered service marks of Mesirow Financial Holdings, Inc., © 2022, Mesirow Financial Holdings, Inc. All rights reserved.
2022 Crain’s Best Places to Work (Received August 2022 reflective of previous 12 months – Licensing fees paid post award for use of the ranking). Best Companies Group (BCG), an independent workplace excellence research firm, conducted a two-part survey. Part one, consisted of an employer questionnaire, used to collect information about benefits, policies, practices, and other general information. Part two was a confidential 77-question employee survey used to evaluate local employee’s workplace experience and culture. Rankings and/or recognition by unaffiliated rating services and/or publications are not indicative of a firm’s future performance nor do they evaluate the quality of services provided to clients or guarantee that he/she will experience a certain level of results if Mesirow is engaged, or continues to be engaged, to provide investment advisory services, nor should they be construed as a current or past endorsement of Mesirow by any of its clients.