Today, we primarily invest in transitional floating rate commercial mortgage loans with an emphasis on middle-market multi-family assets.

We may also invest in other commercial real estate-related investments including mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed rate loans, construction loans and other commercial real estate debt instruments.

The loans we target for origination and investment typically have the following characteristics:

• Sponsors with experience in particular real estate sectors and geographic markets
• Located in markets in the U.S. with multiple demand drivers, such as growth in employment and household formation
• Fully funded principal balance greater than $5 million
• Loan to Value ratio typically up to 80% of as-is value and up to 75% of as stabilized value
• Floating rate loans tied to one-month U.S. denominated LIBOR or any index replacement
• Three-year term with two one-year extension options

We believe that our current investment strategy provides significant opportunities to our stockholders for attractive risk-adjusted returns over time. However, to capitalize on the investment opportunities at different points in the economic and real estate investment cycle, we may modify or expand our investment strategy.

We believe that the flexibility of our strategy supported by our Manager’s significant commercial real estate experience and the extensive resources of ORIX USA will allow us to take advantage of changing market conditions and maximize risk-adjusted returns to our stockholders.