Hines and Rialto Capital Close $1.1 Billion Office Credit Fund

HOUSTON — Hines and Rialto Capital held the final close of Hines Rialto Credit Partners (HRCP) on Sept. 2, 2026, raising $1.1 billion in investor commitments for a co-general partnership focused on U.S. office credit investments. The fund was launched in 2024 and drew capital from 126 investors, with a minimum investment of $100,000.

Fund Structure and Strategy

Hines Rialto Credit Partners is structured as a credit vehicle — not an equity fund — with a mandate to acquire existing office loans and originate new lending, including bridge loans and other transitional financing. The strategy is aimed at office properties that need recapitalization as a wave of pre-2022 loan maturities collides with higher interest rates and lower valuations across the sector.

The fund recorded a first close of approximately $700 million in late 2024 before reaching its final tally of $1.1 billion. The vehicle had initially targeted approximately $2.5 billion in commitments, meaning the final close came in below that original goal — a reflection of the caution many institutional investors continue to apply to office-focused strategies.

"Amid the rapid growth in private credit, what sits behind the loan matters," said Alfonso Munk, Global Co-Head of Investment Management at Hines. "Yield alone does not tell you the quality of the risk. In real estate credit, understanding the underlying asset — what it is worth, how it performs and how it may hold up under pressure — is becoming increasingly important as the market works through a significant refinancing cycle. That kind of visibility matters in any market, but particularly in a more complex credit environment."

Jeff Krasnoff, CEO of Rialto Capital, framed the close as a product of the two firms' complementary capabilities. "This close reflects the strength of bringing together two highly complementary platforms, and the potential opportunity we see in U.S. office credit," Krasnoff said. "We believe Rialto's experience across the real estate lending market, combined with Hines' deep market and operating expertise, gives us a differentiated perspective on opportunities in a market where we believe complexity is creating meaningful openings for experienced investors."

Early Deployments: Textile Building and Beyond

HRCP is already active in the market. The fund provided a $228.9 million bridge loan connected to the refinancing of the Textile Building at 295 Fifth Avenue in New York — a transaction that illustrates the vehicle's core use case of supplying transitional capital to large urban office properties navigating a volatile leasing and valuation environment.

The fund has also deployed roughly $100 million in loans to office assets controlled by developer Joseph Hilson, operating as a relationship lender to experienced sponsors whose properties require recapitalization rather than liquidation.

Together, these early transactions position HRCP as a capital-at-work vehicle rather than one waiting on the sidelines for market clarity.

Market Context: Office Debt Stress and Private Credit Growth

The fund's formation comes as a significant volume of office loans originated before 2022 approach maturity in a higher-rate environment. Falling office valuations — particularly for older commodity product in central business districts — have left many borrowers facing loan-to-value ratios that make traditional refinancing difficult. At the same time, regional and money-center banks have pulled back from commercial real estate lending, especially in the office sector, creating an opening for non-bank private credit providers.

HRCP is structured to fill that gap, offering transitional financing to office owners with viable assets who cannot roll existing debt on pre-2022 terms. The fund's thesis is that complexity and dislocation in office lending have created mispriced risk — situations where operators with deep asset-level knowledge can structure loans with attractive risk-adjusted returns.

The vehicle is part of a broader shift in institutional real estate investing, as capital rotates toward credit strategies that offer contractual income and seniority in the capital stack at a time when equity values remain uncertain across property types.

About the Partners

Hines is a global real estate investment manager with $91.7 billion of assets under management across property types, with approximately 4,600 employees operating in 30 countries. The firm brings nearly seven decades of experience investing in, developing, and operating real estate, along with local market expertise across major U.S. cities.

Rialto Capital is an integrated real estate investment management and asset management company headquartered in Miami, with additional offices in New York and other U.S. locations. The firm operates a dedicated special servicer and invests across the real estate capital structure, including properties, loans, and securities. Rialto brings expertise in real estate credit, loan origination, underwriting, and asset management to the partnership.

Together, the two firms structured HRCP to combine Hines' property-level operating knowledge with Rialto's credit and loan management capabilities — a pairing the partners say gives the fund a differentiated view of risk in a sector where many traditional lenders have reduced their exposure.