(Bloomberg) -- Todd Boehly’s Eldridge Industries formed a venture with AECOM Capital executives to bet on US commercial real estate.

Boehly’s firm is the majority owner of Eldridge Acre Partners, which anticipates investing about $3 billion across multiple strategies in the next five years, according to people with knowledge of the matter. EAP will manage existing AECOM Capital assets and vehicles, which total more than $1 billion.

“Investments made during times of distress like the one we’re currently experiencing tend to outperform, and we’re in position to capitalize on some of the distress,” EAP Chief Executive Officer Warren Wachsberger said in an interview. 

Real estate owners have struggled as rising borrowing costs and a pullback from lenders complicate financing. A measure of commercial-property prices from Green Street fell 21% in the two years through March.

EAP will target potential opportunities including unfinished projects that require additional capital, Wachsberger said. Deals could involve structured investments, such as subordinated equity positions, as well as traditional equity bets. 

The firm will seek to invest in mixed-use properties, student housing, and industrial buildings in cities with booming port traffic such as Savannah, Georgia. Wachsberger said the firm may also explore investments in multifamily rental properties in what he described as “blue cities in red states” such as Raleigh and Charlotte, North Carolina, and Nashville. 

“Warren and the EAP team’s impressive track record of sourcing, developing and managing diverse real estate has laid the groundwork for a successful platform that we are proud to support and complementary to our existing capabilities,” Tony Minella, co-founder and president of Eldridge Industries, said in a statement. 

The new company’s executive committee will include Chief Investment Officer Josh Katzin, Managing Partner Travis Skelton, Chief Operating Officer Paul Giorgio and Head of Asset Management Meredith Strongin. 

Eldridge invests across a slew of industries including insurance, asset management, technology, consumer and sports. The company has historically made real estate bets through platforms including Cain International, which counts luxury hotel operator Aman Group and the Beverly Hilton, host of the Milken Institute’s annual conference, in its portfolio.

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