With more than 65 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 100 private debt investment professionals, we’ve earned a reputation as a leader in the private debt market.
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
B-Notes
Construction lending (conventional and participating)
Lending across property sectors—industrial, multifamily, office, retail, hospitality, and niche property sectors
Mezzanine debt
Senior Mortgage Bridge loans
Preferred equity (typically structured like debt)—part of either existing property or construction loan capital stacks
U.S.-focused investments
The market dynamics today favor the real estate credit market: There is a large supply and demand mismatch; Traditional lenders are not as active as they deal with legacy real estate exposures and liquidity issues. Learn more about the market environment and the versatility of real estate credit, as well as where it fits in and the potential benefits it can bring to a portfolio.
Why it’s (still) a good time to invest in private real estate credit
We believe it’s a good time for debt. Given current market opportunities, private real estate credit looks particularly attractive today.
Attractive opportunities for diversification with private real estate credit
Historically, the best performing investment vintages have often followed periods of distress and volatility. However, in our view, the stage is now set for real estate credit to generate attractive income returns with favorable risk tailwinds.
What’s after “higher for longer?”
In this paper we explore whether interest rates are likely to stay higher for longer or revert to the mean—and the impact it could have on real estate credit returns.
Unpacking the $2 trillion wall of maturities
The looming wall of maturities is looking to cause hundreds of billions of dollars in deals within certain sectors and provide opportunities to deploy capital as supply remains constrained.
U.S. High Yield Real Estate Credit
Principal’s High Yield Real Estate Credit seeks to provide current income, while aiming to preserve capital and mitigate downside risk.
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.
Footnotes
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.