3650 REIT Announces $100M Capital Commitment from POBA

POBA joins other world-class institutional investors CalSTRS and Mubadala to increase depth and breadth of 3650’s investor base

Capital to be invested in 3650’s Bridge and Event-Driven Strategy

News provided by
3650 REIT
Oct. 27, 2023 10:40
MIAMI--(Business Wire / Korea Newswire)--3650 REIT (“3650”), a nationwide commercial real estate lender originating and managing portfolio loans for leading institutional investors, today announced that Public Officials Benefit Association (“POBA”), the Seoul, South Korea-based public pension fund founded in 1975, has made a $100 million capital commitment to a vehicle employing 3650’s U.S.-based Bridge and Event-Driven (“BED”) lending strategy. The capital will to be used to expand 3650’s BED lending strategy in the U.S., which focuses on shorter-term loans for borrowers pursuing ground-up construction, acquisitions, repositionings, recapitalizations or the restructuring of partnerships.

At a time when banks and traditional funding sources are pulling back from commercial real estate lending, robust support from global institutional investors has enabled 3650’s alternative lending platform to continue to judiciously deploy capital in today’s challenging environment while others are forced to pull back.

“We are very excited to establish a mutually beneficial connection with POBA and look forward to growing a long-term relationship,” said 3650 REIT Co-Founder and Managing Partner Jonathan Roth. “This strategic capital commitment is yet another testament to the strength of 3650’s lending approach, which continues to garner attractive, risk-adjusted returns for our institutional investors around the globe. As fund allocators seek reliable havens for their capital in the U.S., 3650’s high-touch, hands-on, property-level approach remains attractive for those looking to make longer-term investments backed by sponsors with well-located, relevant assets.”

“3650 is an ideal partner for POBA as we continue to seek international relationships with leading alternative assets firms in the U.S. and worldwide,” said Harry Song, Head of Overseas Real Estate for POBA. “The firm’s ability to utilize its lending experience and expertise through multiple real estate market cycles to deploy capital, even amidst today’s sector-specific and economic challenges, make it an attractive option to generate appealing, risk-adjusted returns for our fund members. We look forward to building upon our relationship with 3650 well into the future.”

3650 originates portfolio loans on behalf of its institutional partners in a broad swath of U.S. markets and offers a full spectrum of lending products across the property life cycle, resulting in a strong value proposition for both investors and borrowers. By holding and servicing each loan it makes through maturity and retaining the risk on each, 3650 creates a true alignment of interest with project sponsors and employs a deep focus on building relationships.

3650 provides loans through various strategies, originating first-mortgage loans secured by well-located, stabilized properties; 3650 provides borrowers with flexible loan structures for cash-flowing or newly constructed projects with clear paths to stabilization. 3650 currently has $5.2 billion in loans originated across its lending platform and services more than $16 billion from its rated servicing platform.

About 3650 REIT

3650 (pronounced “Thirty-Six Fifty”) REIT is a nationwide commercial real estate lender originating and servicing portfolio loans for relationship borrowers in addition to other debt financing opportunities. 3650 REIT’s highly differentiated lending process, national scale, vertically integrated platform and rated special servicer status enable it to deliver tailored financing solutions, high-touch service and reliable, customer-focused outcomes. Additionally, 3650 REIT’s ability to retain the risk on each investment allows it to closely manage its portfolio. Co-Founders and Managing Partners Toby Cobb, Justin Kennedy and Jonathan Roth have played leading roles in the evolution of the CRE debt markets. Headquartered in Miami, Florida with offices in New York, Los Angeles, Dallas, Atlanta, Nashville and Washington D.C. For more information, visit: www.3650REIT.com.

About Public Officials Benefit Association (POBA)

The Public Officials Benefit Association (POBA) was established in 1975 as a public pension fund for South Korean public officials. It currently manages US$ 17 billion in assets and has become an active investor in alternative assets in the past few years.

THIS INFORMATION DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY, AN INTEREST IN ANY JURISDICTION.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231017487797/en/

Website: https://3650reit.com/

Contact

ICR for 3650 REIT
Greg Michaels
646-677-1836
Gregory.Michaels@icrinc.com

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