Peebles Corp. Unveils Willowbrook Partners, it's Private Commercial Real Estate Lending Arm

Don Peebles’ renowned real estate development firm, Peebles Corporation, has initiated its venture into the private credit sphere. The corporation has unveiled Willowbrook Partners, a private credit firm headquartered in Miami, focusing on tailored credit solutions ranging from $5 million to $50 million for commercial real estate projects.

Leadership and Ambitions

Don Peebles and his son, Donahue Peebles III, will co-chair the board of Willowbrook Partners. Donahue Peebles III expresses the anticipation of completing transactions worth "several hundred million dollars" in the first year, aiming to provide substantial value to investors familiar with their targeted markets.

Operational Focus

Willowbrook Partners will be led by CEO Sten Sandlund, a seasoned professional with four decades of experience in commercial real estate (CRE). Sandlund emphasizes the company's focus on bridge lending and value-add lending in the middle market space, highlighting the significant opportunities within this segment.

Market Strategy

Apart from bridge and value-add lending, Willowbrook Partners plans to offer financing for acquisitions and pre-development. The firm targets investments across various asset classes but will concentrate primarily on projects along the Interstate 95 corridor, leveraging their historical activity and market familiarity.

Industry Dynamics

The retreat of traditional lenders from large-scale CRE lending, coupled with stricter capital requirements and bank consolidations, has paved the way for private credit to address challenges associated with CRE capital stacks. This shift presents an opportunity for private credit to complement institutional lenders in the market.

Capitalization and Expertise

Willowbrook Partners will primarily draw capital from the Peebles Corporation family office. Leveraging their decades of experience in real estate development, the firm aims to provide relationship banking tailored to the needs of developers, capitalizing on their understanding of both sides of the CRE equation.