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Our private debt capabilities

With more than 60 years of private debt investment experience, over 30 years providing private debt advisory services, almost a decade of operating a multi-investor Private Debt Strategy series, and more than 105 private debt investment professionals, we’ve earned a reputation as a leader in the private debt market.1

Over that time, we’ve found that delivering the desired outcomes for private real estate debt investors means controlling the timing and quality of every aspect of a private debt investment transaction. We deliver that through our vertically integrated debt platform, which includes underwriting, closing, appraising, engineering, researching, and servicing.

As the complexity of real estate transactions has increased, we’ve upgraded our skill set to specialize in intricate transactions. These enhancements allow us to offer our clients an even broader set of private debt opportunities from core and core-plus, through value-add.

  • Fixed- and variable-rate loans

  • Mezzanine debt

  • B-Notes

  • Senior Mortgage Bridge loans

  • Construction lending (conventional and participating)

  • Preferred equity (typically structured like debt)—part of either existing property or construction loan capital stacks

  • Lending across property sectors—industrial, multifamily, office, retail, hospitality, and niche property sectors

  • U.S.-focused investments

A broad range of real estate investment solutions.

Our experienced investment teams provide comprehensive, specialized, and sustainable capabilities across all four quadrants of commercial real estate—public equity, private equity, public debt, and private debt—as well as infrastructure investing. Whatever real estate strategy or combination of strategies you believe is right for your objectives, we can help.

  • Private equity

    Core, Value-add, and Opportunistic Strategies

  • Private debt

    Commercial Mortgages and High Yield Debt

  • Public equity

    Listed REIT Securities

  • Public debt

    Commercial Mortgage-Backed Securities

  • Listed infrastructure

    Listed Infrastructure Securities

  • Financing solutions

    Private Debt Origination

Get the latest insights.

Real estate
8 min

The case for private real estate credit

Looking forward, new debt investments made in the next couple of years should potentially benefit from underwriting post inflation valuations, higher yields, and better visibility on the post-COVID real estate landscape.

Scott R. Smith
Managing Director, Portfolio Management, Principal Real Estate Debt
Troy Kort, CFA
Portfolio Manager, Principal Real Estate Investors
Kirloes Gerges
Managing Director, Portfolio Management, Principal Real Estate Debt
Real estate

High Yield Real Estate Debt

Why we believe flexibility is important to an investor's portfolio.

1As of 30 June 2022. Principal Real Estate Investors became registered with the SEC in November 1999. Activities noted prior to this date above were conducted beginning with the real estate investment management area of Principal Life Insurance Company and later Principal Capital Real Estate Investors, LLC, the predecessor firm to Principal Real Estate Investors, LLC.

Past performance does not guarantee future results.

Investing involves risk, including possible loss of principal.

Real estate investment options are subject to risks associated with credit, liquidity, interest rate fluctuation, adverse general and local economic conditions, and decreases in real estate values and occupancy rates.

Investments in private debt, including leveraged loans, middle market loans, and mezzanine debt, second liens, are subject to various risk factors, including credit risk, liquidity risk and interest rate risk. Commercial mortgage is subject to the basic risk of lending and direct ownership of commercial real estate mortgages.

Principal Real Estate is a trade name of Principal Real Estate Investors, LLC, an affiliate of Principal Global Investors.