Dream Unlimited Corp., along with PaulsCorp LLC and U.S.-based financing veteran Vicky Schiff have partnered to launch Avrio Real Estate Credit, which plans to offer short-term, first mortgage debt and other structured finance products.
Those offerings are to include B notes, mezzanine debt and preferred equity for the acquisition, refinancing and recapitalization of commercial real estate assets, with loans ranging from $25 million to $150 million.
Avrio, which will maintain a Toronto office but be based in Denver, represents Dream’s entry into the U.S. credit market.
“Given the current supply gap of available debt to meet the needs of real estate operators and developers in the U.S, Avrio will play a critical role in bringing flexible and creative debt funding to developers searching for this type of instrument,” said co-founder and Dream’s (DRM-T) chief responsible officer Michael Cooper in a statement.
“Dream places a strong emphasis on sustainability across all of our strategies and Avrio fits well within our goals of building better communities in our markets.”
Dream has over 600 employees and 12 offices across Canada, the U.S. and Europe with over $23 billion in assets under management throughout North America and Europe. Dream also develops land and residential assets in Western Canada.
In addition to Denver and Toronto, Avrio also has offices in New York and Los Angeles.
According to a release, the venture will use a process developed in conjunction with Dream’s sustainability and ESG team to collect, analyze and report on ESG data “in a streamlined manner, intended to help external partners and borrowers improve their assets ESG scores, attributes and their overall impacts on their communities and the environment.”
Schiff, who sits on Dream’s board of trustees, was most recently the co-founder and managing partner of Calabasas, Calif.-based Mosaic Real Estate Investors.
She has an extensive background in the real estate and financing sectors stretching back to 1989, has founded or co-founded a number of ventures and has public and private board experience.
“We believe with the current real estate capital markets experiencing some dislocation, now is an opportune time,” Schiff, who is Avrio’s CEO, said in a statement.
“In addition to financing new development and value-add projects that utilize energy-efficient and green construction materials, methods, or systems, we want to work with borrowers who create jobs, encourage education and employee engagement and who are dedicated to building projects that help expand the inventory of workforce, affordable and transitional housing.”
PaulsCorp is a family-based real estate investment, development and management company.
With over 230 employees, the company has developed or managed over $6.5 billion in real estate assets including approximately 15,000 single-family homes, multiresidential units, townhomes and condominiums.
PaulsCorp currently has over $2 billion in assets under management and $825 million under development.
Kyle Geoghegan, previously the managing director for Trez Capital, has also joined Avrio as U.S. head of originations.