- Hines and Rialto Capital closed Hines Rialto Credit Partners with $1.1B in investor commitments from 126 investors.
- The office credit fund will deploy capital through debt acquisitions and new lending across US office properties.
- The fund has already financed office assets in Manhattan, New Jersey, and San Diego.
Bisnow reports that Hines and Rialto Capital closed a $1.1B vehicle focused on US office debt. The office credit fund closing drew 126 investors and required a $100K minimum investment, according to an SEC filing.
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Private Credit Targets Office Complexity
The firms launched Hines Rialto Credit Partners in 2024 and gathered $700M at its first close. Hines said growing private credit demand is creating interest in strategies that combine underwriting specialization with local market knowledge.
Hines global co-head of investment management Alfonso Munk said yield alone does not capture risk quality. He emphasized the value of understanding the underlying real estate as the market moves through a large refinancing cycle.
The fund’s emphasis on office credit comes as borrowers work through a significant refinancing cycle. Hines argues that specialized underwriting is increasingly important because office assets can vary sharply by location, tenancy. Operating performance, and value. That complexity can create opportunities for lenders able to evaluate the underlying property.
The Details
The fund will pursue office credit opportunities through debt acquisitions and new lending. Rialto CEO Jeff Krasnoff said Rialto’s lending experience complements Hines’ market and operating expertise.
The vehicle has already made several large loans. It provided a $228.9M bridge loan to refinance Manhattan’s Textile Building. And a $91M loan supporting Saca Development’s acquisition of One America Plaza in San Diego.
The fund also provided $58M to refinance a Columbia Pacific Advisors office property in New Jersey. In 2025, it bought nearly $100M in loans secured by three Midtown Manhattan office buildings owned by Hilson Management.
The Manhattan loan purchase covered properties at 349 Lexington Ave., 185 Madison Ave., and 5 West 37th St. The buildings total 71K SF, 80K SF, and 83K SF, respectively. Flagstar Bank originated the loans before the fund acquired them.
Why It Matters
The final close gives Hines and Rialto more capacity to pursue office debt at a point when refinancing complexity is creating openings for nonbank lenders. The strategy centers on assets where underwriting the real estate itself can matter as much as the headline yield.
That approach mirrors the continued expansion of private credit in CRE finance, especially as conventional lenders and borrowers work through office maturities.
What’s Next
Hines Rialto Credit Partners is expected to deploy the new capital into US office credit investments. The existing portfolio shows the fund can participate through both loan purchases and direct financing.
Separately, Hines is also moving back toward development where it sees a scarcity advantage. Munk said last month that development economics now work across multiple sectors in select locations.
