Terra Income Fund 6, Inc., a publicly registered non-traded business development company sponsored by Terra Capital Partners, has officially satisfied its minimum offering requirement of $2 million. Known as “breaking escrow”, reaching this stage has allowed the board of directors to declare an initial distribution rate for the month of June beginning on June 24, 2015 of $0.00274 per day per share (equivalent to an annual distribution rate of 8.0 percent), according to a prepared statement.
Initial capital is being invested primarily in commercial real estate loans to US companies secured by interests in high quality commercial real estate in the United States.
Terra Capital Partners LLC, Terra Income Fund 6’s sponsor, is a specialty finance company that invests primarily in commercial real estate loans and commercial real estate-related debt securities of private companies.
According to Bruce Batkin, co-founder and CEO of Terra Capital Partners and chief executive officer and director of Terra Income Fund 6, the first business development company “will focus exclusively on loans backed by commercial real estate.”
Batkin adds that “Terra Income Fund 6 and Terra’s growing platform reflect the increasing importance of alternative lenders to the recapitalization and recovery of the US commercial real estate market. We have identified initial investments that we believe will be a good foundation for the business development company’s portfolio.”
In other Terra Capital news, the New York-based real estate investment sponsor recently welcomed Dan Hartman to its team as managing director of investment originations, as the DI Wire previously reported. With more than 25 years of experience in commercial real estate, Hartman has worked for GE Capital Corp, Daimler Chrysler Capital Services, ORIX USA, and Chase Manhattan Bank. He joins Terra from Ares Management, where he served as a principal for nine years.