GMACCM Sub, Apollo Close RE Fund

GMAC Institutional Advisors, a subsidiary of Horsham, Pa.-based GMAC Commercial Mortgage, and Apollo Real Estate Advisors, a private real estate investment company, have closed a real estate mezzanine fund with an investment capacity of $200 million.The fund will invest in "junior loans and preferred equity positions," typically ranging from $8 million to $20 million per transaction, with terms of up to five years, the companies said. Besides Apollo, the managing general partner, and GIA, the co-general partner, lead investors include insurance companies and a "private endowment." A GMAC affiliate has provided a five-year term credit facility for the fund as well. "We look at mezzanine investments as having components of both debt and equity," said Eric Lindner, president of GIA. "We believe we can offer more creative solutions to borrowers by teaming up with an established equity sponsor as we move into this space." The fund expects to invest the capital available over the next 24 months.