GTIS Partners is debuting a new name and a $250M debt vehicle that will focus on the same problem that has been plaguing the multifamily market for years: financing.
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Now Brightshore Capital, the firm plans to use the $250M initial amount to invest in residential projects that need a financial boost as a $65B wave of debt is maturing and construction costs and interest rates are still sky-high.
The debt vehicle can be stretched to support more than $1B worth of transactions by selling senior notes, founder and President Tom Shapiro told Bloomberg.
Historically, Brightshore has invested $1.5B in debt. However, a vehicle focused solely on debt is a first for the firm. It will originate loans and invest in high-yield credit, including preferred equity, mezzanine financing, stretch senior and B-notes.
The firm is homing in on a few markets, namely San Francisco and Austin. In San Francisco, Brightshore wants to focus on equity, as it believes the market is recovering and will provide an upside.
Austin, meanwhile, has fully occupied new buildings and lower rents, which could require refinancing of construction debt or operating at a higher cost. There, the firm will focus on recapitalization, Shapiro told Bloomberg.
Multifamily financing is coming from myriad sources, as tenant demand is up 8% year-over-year and asking rents have fallen 1.5% year-over-year. In the Sun Belt, one of Brightshore's focus areas, net absorption outpaced the rest of the country during the first half of the year.
Short-term rental operator Airbnb this week announced a $250M fund to fill affordable housing's financing gap. Large asset managers Apollo and Blackstone started lending platforms for multifamily in the past year as well.
Brightshore's operations will stay the same. That includes its team, leadership and investment strategy. In the U.S. and Brazil, it primarily focuses on residential and industrial. Hospitality and office investments are also a focus in Brazil. The firm manages $5.6B in assets globally.
Brightshore was renamed to reflect the firm’s transition to being 100% partner-owned as of last year, according to a news release. It bought out minority partner GoldenTree Asset Management in 2025.
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