Commercial Mortgage Loans

Approach

This strategy originates whole loan commercial first mortgages on stabilized, multi-tenant properties across U.S. major markets and property sectors. We believe packaging high quality real estate credits into a portfolio diversified across borrowers, tenants, geographic location and property type will deliver attractive long-term, risk-adjusted returns versus corporate credits of a comparable quality.

Key Benefits

  • Team and Platform: 40+ real estate professionals, part of broader Voya Fixed Income platform that provides deep macro, credit, and securitization market insights, manage over $12 billion of portfolios consisting of over 1,100 loans and 1,800 properties
  • Risk-Adjusted Return Potential: Consistent, large scale market presence creates substantial flow of attractive core, core plus and opportunistic deals
  • Tailored Approach: Ability to co-invest with affiliated Voya Financial entities, customize portfolio based on individual client needs such as duration, credit risk, leverage, and capital. For insurers, we have a deep understanding of industry-specific needs including ancillary support requirements

Performance

Performance

As of 12/31/201 Month3 MonthYTD1yr3yr5yr10yrSince Inception (1/01/00)
Composite Gross0.291.645.945.946.825.335.566.50
Composite Net0.271.585.695.696.575.085.306.25
Index*0.192.2210.0610.066.706.135.345.88
Gross Excess Return0.10-0.58-4.12-4.120.13-0.800.220.62

* Bloomberg Barclays U.S. Corporate A Index

Past performance does not guarantee future results.

Periods greater than one year are annualized. Gross returns are presented after all transaction costs, but before management fees. Returns include the reinvestment of income. Net performance is shown after the deduction of a model management fee equal to the highest fee charged. The returns presented are not subject to the input, calculation, presentation, and disclosure requirements of Global Investment Performance Standards (GIPS). Information is subject to change at any time.

Literature

Investment Team

Gregory Michaud

Gregory Michaud

Head of Real Estate Finance

Years of Experience: 32

Years with Voya: 26

Gregory Michaud is head of real estate finance for Voya Investment Management, responsible for the oversight and management of sourcing and underwriting all commercial real estate loans. Additionally, he serves on the executive leadership team for proprietary assets, the U.S. Credit Committee and chairs the CMBS Steering Committee. Prior to joining the firm, Greg was a real estate appraiser focused on commercial properties and eminent domain cases in the southeastern U.S. Greg is an active member of several distinguished real estate industry groups, including the Urban Land Institute, Commercial Real Estate Finance Council, Mortgage Bankers Association and the National Association of Real Estate Investment Managers. Greg received a BS in real estate from Florida State University, an MBA in finance from Kennesaw State University and an Executive MBA from the University of Georgia.
Christopher Gorman

Christopher Gorman

Head of Real Estate Portfolio Management

Years of Experience: 26

Years with Voya: 6

Chris Gorman is head of real estate portfolio management and is responsible for managing all commercial mortgage client portfolios including affiliate and third party managed accounts. Prior to joining Voya Investment Management, he was a senior vice president and partner at H/2 Capital Partners managing several aspects of the firm’s business as well as the execution and surveillance of commercial real estate credit investments. Previously, Chris was a vice president for AIG’s Global Investment Group underwriting real estate corporate credit investments. Prior to AIG, Chris was a director and credit analyst in MetLife’s global credit research and real estate capital markets group focused on commercial real estate debt opportunities. Chris received a BA in economics from Boston College and an MBA from the Leonard N. Stern School of Business at New York University.

Disclosures

Principal Risks

All investing involves risks of fluctuating prices and the uncertainties of rates of return and yield inherent in investing. Investments in commercial mortgages involve significant risks, which include certain consequences as a result of, among other factors, borrower defaults, fluctuations in interest rates, declines in real estate values, declines in local rental or occupancy rates, changing conditions in the mortgage market and other exogenous economic variables.

All security transactions involve substantial risk of loss. The strategy will invest in illiquid securities and derivatives and may employ a variety of investment techniques such as using leverage, and concentrating primarily in commercial mortgage sectors, each of which involves special investment and risk considerations.