RRA Capital, a Pheonix-based private real estate debt investment manager, today announced the final close of RRA Real Estate Debt Fund III at $224.3 million — the largest fundraise in the firm’s history.
With the close complete, Fund III is approaching the midpoint of its five-year term, with approximately one year of investment activity remaining before entering the two-year harvesting phase. The fund continues RRA’s strategy of originating short-term bridge loans for value-add and transitional commercial real estate assets across the U.S.
“This is an exciting milestone for our team and our investors,” said Marc Grayson, co-founder and president of RRA Capital. “The success of Fund III reflects growing demand for flexible capital solutions in today’s market and reinforces our position as a leading participant for middle-market bridge financing.”
Fund III attracted commitments from a diverse group of institutional investors — including pension funds, insurance companies, and university endowments — and is expected to deploy over $800 million of capital over the course of its five-year term.
“The closing of Fund III demonstrates optimism that values have bottomed out,” said Boots Dunlap, CEO and co-founder of RRA Capital. “It is expected to provide liquidity options for borrowers unable to qualify for DSCR-based refinances in today’s higher-rate environment, as well as flexible acquisition financing for buyers targeting distressed sellers.”
RRA Capital has originated over $2 billion in commercial real estate loans since inception, with a focus on multifamily, industrial, retail, hospitality, healthcare, and select office assets. The firm is headquartered in Phoenix and lends nationwide.
