Leste Real Estate Completes Preferred Equity Deals in Chicago and Jacksonville; Delivers 36 Percent IRR on San Diego Office Asset

Leste Group’s Real Estate Investment Strategy Continues to Close Opportunities Across Multiple U.S. Markets

MIAMI--(BUSINESS WIRE)--Leste Real Estate U.S. (“Leste Real Estate”), the real estate investment and credit strategy of global independent alternative investment manager Leste Group, today announced it has funded two new preferred equity transactions totaling $16.3 million, and realized a net IRR of 36 percent¹ on its 2022 investment in a San Diego office building.

The transactions included:

• $8.3 million preferred equity investment on a 2023 vintage, 97-unit, 92 percent occupied asset located in the River West neighborhood of Chicago
• $8 million preferred equity investment to finance construction of a new 150,000-square-foot aircraft maintenance facility located in Jacksonville, Florida for a leading global aerospace company that develops, manufactures, and services airplanes for customers worldwide
• Exit of a $3 million investment used to fund the acquisition of a 59,175-square-foot office building in San Diego’s Kearny Mesa submarket, resulting in a 36 percent¹ net IRR

“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 at Leste Group. “Our strategy employs a disciplined investment approach, focusing on assets we feel have stable and predictable cash flow streams such as Multifamily and Net Lease.”

Leste has deployed more than $400 million in its real estate credit strategy across 60 investments. The team specializes in sourcing and executing senior and structured credit investments collateralized by residential and commercial properties across the U.S.

1)	Net of management fees, carry and expenses but before taxes.

About Leste Group
Founded in 2014, Leste Group is a global independent alternative investment manager guided by core values of respect, creativity, and teamwork. The firm offers investors a diverse range of strategies across real estate, private equity, and special situations. Leste Group's investment teams leverage institutional-grade processes, a nimble, entrepreneurial approach, capital markets expertise, and exclusive networks to source unique opportunities and drive risk-adjusted returns. To learn more information on Leste Group, please visit leste.com.