Leste Posts Double-Digit IRR in Real Estate Credit

Leste Real Estate US, the Miami-based real estate investment and credit strategy of alternative asset manager Leste Group, has announced two more deals and achieved a double-digit IRR on a San Diego office building investment.

The firm completed a $8.3 million preferred equity investment in a 97-unit residential building in Chicago’s River West neighborhood, as well as a $8 million preferred equity investment in a new 150,000 square foot aircraft maintenance facility in Jacksonville, FL for an unnamed global aerospace company.

The firm’s $3 million investment in the 59,175 square foot office property in San Diego’s Kearny Mesa submarket resulted in a 36% return.

“With the need for real estate credit continuing to grow in the current economic environment, we are actively providing creative custom liquidity solutions to sponsors as traditional lenders continue to retreat from the sector,” said Stephan de Sabrit, managing partner of Leste Group.

These transactions come on the heels of Leste Group and SAR Apartment Capital’s $23.6 million purchase of four multi-family properties in Columbus, Ohio, last year.

Leste, which was founded in 2014, has invested more than $400 million in real estate credit over 60 transactions. The team specializes in sourcing and implementing senior and structured credit investments secured residential and commercial real estate in the US.