Jerry Quill, a former GE Real Estate managing director, has formed Charles Street Capital, a Southborough, Mass.-based commercial real estate investment company."Strong real estate fundamentals in many North American markets together with low financing costs continue to create attractive investments," said Mr. Quill. "We see a major opportunity in the U.S. debt market, specifically purchasing assets from lenders that have grown their portfolios rapidly over the past few years and have a need to reduce or rebalance real estate exposure." The firm will initially target the acquisition of loans from lenders -- such as banks, insurance companies, and government agencies -- in the secondary market. "We believe purchasing loans generates superior risk-adjusted returns for our investors compared with buying properties in some of today's high priced markets," Mr. Quill noted. The firm is interested in fixed and floating-rate loans, including nonperforming loans, on various property types. The firm expects the loan sale market to grow significantly in the coming years as a result of the recent "expansion in commercial real estate credit" by all sorts of lenders.
