NEW YORK, Jan. 23, 2020 /PRNewswire/ -- Trevian Capital, a direct bridge lender that provides short-term bridge loans nationwide, has recently funded approximately $200 million in transitional multifamily bridge loans across 14 closings in seven states. Since launching its lower-cost Transitional Multifamily bridge product in Q4-2018, Trevian Capital has earned a reputation as the go-to lender for bankable sponsors who need flexible capital for value-add, transitional, and/or construction-completion multifamily deals nationwide.
The Transitional Multifamily bridge product features pricing of 375 to 500 basis points over the 30-day LIBOR, leverage of up to 85% LTC, and a nationwide reach across primary, secondary, and tertiary markets.
"All of these transactions entail some sort of nuance that makes them fall outside the parameters of more conventional multifamily bridge lending," commented Trevian's founder, Michael Hoffenberg. "These scenarios include things like cash out to sponsorship, very quick closings, completion of mid-stream construction deals, deals in tertiary markets, loan amounts sub-$15 million, or first-time borrowers or partnerships, to name a few. In dealing with these scenarios, we've come to find that we fill a void in the market for good borrowers who need a creative solution with speed and flexibility, a short yield maintenance, and a balance-sheet solution that eliminates the layers of structure that are required when debt funds securitize and/or sell their loans," Hoffenberg added. "In addition to funding on-balance sheet without all of the bells and whistles that most other debt funds require, we also service all of our loans in-house, which provides sponsors with a seamless execution and allows us to act more like a partner to help them complete their business plan in a timely manner and get to a conventional exit as efficiently as possible."
The two deal examples below are representative of Trevian's transitional multifamily lending scenarios:
Phoenix, AZ - $23,500,000 Trevian Capital recently provided $23,500,000 in first mortgage bridge financing on a 50% completed Class-A, garden-style apartment complex in Phoenix, AZ. Proceeds of the loan allowed the sponsor to lower their cost of capital and recapture equity to put into other development projects. In addition to cash out at closing, the loan was structured with additional earnouts and interest rate step-downs pegged to construction and lease-up milestones.
Lubbock, TX - $7,550,000 Trevian Capital recently provided $7,550,000 in first mortgage bridge financing secured by two Class-C, garden-style apartment complexes totaling 173 units in Lubbock, TX. Trevian's loan financed the acquisition of the Property and provided funds to renovate and reposition the assets to a first-time partnership investing in a market where none of them are based out of.
"While our Transitional Multifamily product has grown to become a core part of our strategy, we are also still active in the higher yield bridge lending arena, providing short-term loans on most commercial and multifamily real estate for time-constrained deals, troubled sponsors, and special situations nationwide" Hoffenberg said.
Trevian Capital (www.treviancap.com) provides flexible and timely first-mortgage bridge loans for time-sensitive, value-add, and distressed-borrower scenarios nationwide, with a focus on the $2mm-$100mm+ middle market. Trevian's two lending products include an L+375-500 product for transitional multifamily and a 7.5-9.5% product for time-sensitive and troubled-sponsor scenarios. With roots in Chicago and New York, Trevian Capital lends nationwide.