Commercial real estate leaders Ethan Penner and Chad Carpenter have launched Reven Office REIT, a U.S. office-focused real estate finance company. Based in San Diego with Penner as board chairman and Carpenter as CEO, the newly-formed company aims to raise $1 billion, through a lead investor and a blind pool IPO, to provide office owners and investors with bespoke financing solutions.

Reven Office REIT will utilize a low-risk strategy to take advantage of the significant capital void for office debt by originating first mortgages, mezzanine debt and preferred equity. The company will also make strategic investments in distressed office debt and properties at attractive discounts.

Penner said, “With our proven record as commercial real estate lenders and owners, we believe we can create a market-leading credit platform that caters to high quality office owners and investors, who are faced with extremely limited financing options.”

Added Carpenter, “Nearly $150 billion of mortgages on U.S. office buildings are maturing by the end of 2024, and just over $300 billion of loans will mature by the end of 2026, which presents a sizable opportunity for well-capitalized debt platforms. We believe the current downturn will provide many opportunities to lend to and acquire office debt and invest in buildings at a low basis.”