Flatiron Realty Capital, LLC has partnered with O'Connor Capital Solutions (OCS), a private credit strategy under UBS O'Connor, to establish a co-investment strategy focused on residential transition loans (RTL).
This collaboration aims to meet the growing demand for short-term, first lien business purpose loans that facilitate renovation and construction on residential properties.
The co-investment vehicle is expected to be capitalized with up to $100 million from OCS, along with equity contributions from Flatiron and its owners, as well as mortgage funding facilities.
This strategic investment is projected to expand Flatiron's managed loan portfolio to $600 million.
The partnership between Flatiron and OCS reflects the increasing interest in RTLs and the favorable market conditions in the real estate lending industry.