On April 30, 2017, Morrison Street Debt Opportunities Fund, L.P. (“MSDO”) held its final close, reaching its target with total equity commitments of $200 million. MSDO provides small-balance mezzanine capital, with investment balances generally ranging from $2 million to $10 million, to real estate market participants across a diversified set of property types in the top 100 MSAs nationwide. MSDO’s investments are structured as either mezzanine debt, B-notes or preferred equity, tailored to meet the specific needs of each situation.
Morrison Street Capital, LLC (“Morrison Street”) formed MSDO to capitalize on the current opportunity in the debt capital markets, as well as to leverage its experience as debt and equity investors in the mid-market real estate sector. MSDO targets stabilized properties, either secondary assets in primary markets or prime assets in secondary markets, and provides long-term mezzanine capital to create tailored solutions for financing gap shortfalls. Unlike many other providers of real estate debt, MSDO does not utilize fund-level leverage.
MSDO attracted capital from both existing and new investors. Investors in the fund include pension plans, endowments, foundations, family offices and registered investment advisors, with investor interest stemming from both the United States and Europe. Of note, most of these have been investors in prior Morrison Street funds.
Thus far, MSDO has made 21 mezzanine investments that, in aggregate, represent approximately 66% of the fund’s total commitments.
Accord Capital Partners LLC, along with its affiliate Accord Europe Limited, served as exclusive global capital advisor to Morrison Street.
ABOUT MORRISON STREET CAPITAL, LLC
Morrison Street Capital is a Portland-based investment management firm that invests directly in property acquisitions in addition to providing equity, preferred equity and mezzanine debt capital to commercial real estate investors and developers. As the discretionary manager of the Morrison Street series of funds, Morrison Street Capital places investment capital on behalf of pension funds, corporations, foundations, trusts and high net worth individuals and families. For further information on Morrison Street, visit: www.morrisonstreetcapital.com.
ABOUT ACCORD CAPITAL PARTNERS LLC
With headquarters in San Francisco and additional offices in Chicago and London, Accord Group Holdings LLC (“Accord”) harnesses a powerful combination of capital markets, investment management and principal investment capabilities for a wide variety of participants in the real estate private equity industry globally. Through Accord Capital Partners LLC, its broker/dealer affiliate in the United States, Accord provides advisory and capital raising services to its clients. For further information on Accord, visit: www.accord-group.net.