borrowers

Lenders are gravitating toward properties where limited supply and resilient rent growth continue to drive strong credit opportunities.

A special use case is emerging for residential-focused bridge lenders.

An increasing number of bridge lenders are growing their platforms or setting up shop as the bank retrenchment continues.

As the market begins to recover, bridge financing is giving borrowers the flexibility and time to stabilize assets and execute business plans, says Canyon Partners Real Estate’s Robin Potts and Jacob Feingold.

Key factors are now in place to support a long-predicted real estate recovery, according to LaSalle’s Brian Klinksiek and Dominic Silman.

Several firms including Fortress Investment Group helped launch the platform.

The financing replaces a $463m maturing commercial mortgage-backed securities loan that matured in June.

The loan facilitates the construction of a 590-unit multifamily property, a planned development in Brooklyn. 

The partners will fund the development of Harper Square, a planned 45-story multifamily development that is close to the city’s Rittenhouse Square submarket.

The New York-based real estate private equity and credit manager exceeded its $250m target for the fund.