National + Finance | August 7, 2023

CREFC, NCREIF Partner on Tracker for Open-End Debt Fund Performance

The CRE Finance Council (CREFC) said Monday it’s working with the National Council of Real Estate Investment Fiduciaries (NCREIF) to introduce a measure tracking the performance of open-end debt funds financing commercial and multifamily real estate. The NCREIF/CREFC Open-End Debt Fund Aggregate will be offered in a draft “consultation” format for a year to allow for industry feedback before it is formally introduced.

This measure being developed by NCREIF and CREFC is expected to support liquidity in commercial real estate as it will enhance investor understanding and build interest in private real estate open-end debt funds.

The Debt Aggregate currently includes 15 funds from 13 managers that operate open-end debt funds with manager self-reported styles including core, core-plus, and value-add. Accordingly, the Debt Aggregate is not an index or a benchmark and serves more as a research resource to build transparency and understanding of CRE debt as an investment, CREFC said.

The second phase in the development of this measure will include style benchmarks establishing parameters for core, core-plus and value-add investment strategies. As part of this effort, CREFC will work closely with NCREIF/PREA (Pension Real Estate Association) reporting metrics that brought standardization and transparency to the institutional private equity industry, which now will include debt funds.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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