The world's largest bond fund is opening a new mortgage real estate investment trust (REIT) to invest in, and issue debt secured by commercial real estate. With nearly $2 trillion in commercial real estate debt maturing in the next five years, and lenders increasingly unwilling to issue loans secured by commercial real estate, they see an opportunity to issue and purchase debt secured by good quality commercial RE assets. They also made note of the fact that most money is chasing trophy properties in New York City and Washington, D.C. and there is a need for liquidity in other markets.
