Boston Companies Form $1B CRE Venture

Eastern Real Estate LLC and Highfields Capital Management, both of Boston, have announced the formation of a $1 billion joint venture that will acquire high-yield commercial real estate debt and other assets to respond to the dislocation in U.S. CRE capital markets. The companies said the joint venture has been formed by Eastern's principals, Dan Doherty and Brian Kelly, together with Highfields' co-founders, Jonathon S. Jacobson and Richard L. Grubman. Eastern will serve as the joint venture's sponsor and invest its own capital, along with the nearly $1 billion being provided by Highfields. In addition to buying CRE debt, the venture will provide preferred equity and buy high-quality assets, the companies reported. "The joint venture is actively acquiring positions from financial institutions, which are seeking to increase their liquidity and provide alternatives for their capital-constrained clients," they said.