With traditional lenders chased from the market by the credit crunch, commercial real estate investment companies with cash to spare are delving into the financing business. Shorenstein Properties, JER Partners and Savanna Investment Management are among the firms that have been looking at opportunities to buy or originate debt on high-quality commercial real estate in major markets.

“These properties are generally performing well but were acquired at the peak of the market in 2006 and 2007 with very short-term, highly leveraged debt,” says Sam Davis, a senior managing director for real estate investing at Northbrook, Illinois–based AllState Insurance Co. “This short-term debt is starting to mature, and the borrowers have no ready source for financing.”

The lender pullback prompted San Francisco–based Shorenstein to expand the investment scope of Shorenstein Realty Investors...