Trevian Capital Launches a Low-Cost Transitional Multifamily Bridge Product
NEW YORK, Jan. 22, 2018 /PRNewswire/ -- Trevian Capital, a direct bridge lender that provides short-term bridge loans nationwide has recently launched a Transitional Multifamily Bridge product for bankable sponsors who need flexible capital for value-add or transitional multifamily assets nationwide, with loans ranging from $8,000,000 - $100,000,000. The new product features pricing of 400 to 600 over the 30-day LIBOR and leverage up to 85% LTC. Trevian has allocated a minimum of $300,000,000 towards the strategy for 2018, and is lending nationwide in Tier 1, 2, and 3 markets.
"We are very excited to roll out a low-cost bridge product that we think fills a real void in the market. This is a price-competitive debt solution for good sponsors who warrant cheaper pricing but whose deals require more speed, flexibility, and creativity than most 3-5-year debt providers currently offer," commented Trevian's founder, Michael Hoffenberg. "We will continue to fund loans for time-constrained and troubled borrowers in our higher-cost bucket (evidenced by our year-end deals), but our new product is an important part of Trevian's 2018 plans."
Trevian's new product launch comes on the heels of funding three time-sensitive/special situation bridge loans totaling $13,250,000 secured by multifamily properties in Texas, Connecticut, and Florida.
Houston, Texas - $8,600,000
Trevian Capital recently provided $8,600,000 in first mortgage bridge financing for the time-constrained acquisition and renovation of two Class C, garden-style multifamily properties consisting of 163 units and 61 units in the Oak Forest and Northwood Forest neighborhoods of Houston, Texas. Hurricane Harvey caused the deal to be funded in two tranches, the first of which required a two-week closing to satisfy the sponsor's 1031-exchange deadline on one of the assets. The second closing was postponed so hurricane damage could be quantified following the storm. Trevian reserved additional proceeds to fund hurricane damage repair, and cross-collateralized the two loans.
New Haven, Connecticut - $2,700,000
Trevian Capital recently provided $2,700,000 in first mortgage bridge financing on a newly redeveloped, vacant, 21-unit Class A apartment building in New Haven, Connecticut. Trevian's loan allowed the sponsor to pull cash out prior to stabilization to use for the redevelopment of a neighboring property. Trevian worked in conjunction with an agency lender who will provide a Freddie Mac Small Balance Loan upon lease-up and stabilization.
Bradenton, Florida - $1,950,000
Trevian Capital recently provided $1,950,000 in first mortgage bridge financing secured by a 46-unit Class C, garden-style multifamily property in Bradenton, Florida. Proceeds from the loan were used to finance the time-sensitive acquisition and renovation of the property following a Fannie Mae kick-out. Trevian's loan enabled the sponsor to meet their end-of-the-year closing deadline and provided prepayment flexibility to suit the sponsor's short-term business plan.
"The common theme with each of these transactions – as with all of the loans we fund – is our acute focus on structuring a loan that helps the sponsor execute their business plan in a timely manner and gets them to a conventional exit as efficiently as possible," Hoffenberg said. "We will even go as far as pre-arranging our own exit on some deals. Trevian works closely with several agency and FHA lenders to provide streamlined Bridge-to-Agency/HUD solutions, which can be an excellent cost-effective feature on multifamily deals."
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+400-600 product for value-add multifamily and an 8.50-10.00% product for time-sensitive and troubled-sponsor scenarios. With roots in Chicago and New York, Trevian Capital lends nationwide.
Contact: Michael Hoffenberg (212) 376-5636; [email protected]
SOURCE Trevian Capital
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