Capital Spotlight – Highlighting featured capital investors. We regularly publish the detailed criteria of our most unique real estate capital sources.
VRC recently interviewed a private real estate credit group historically known for its expertise in structuring creative mezzanine and preferred equity investments. In response to growing demand for cash-flowing multifamily opportunities, the group has launched a senior bridge loan product targeting small-to-middle market value-add multifamily lending opportunities.
Focused on loan sizes between $10MM and $50MM, the program offers non-recourse execution, competitive pricing in the SOFR + 275–375 bps range, and a streamlined closing process. With an emphasis on experienced sponsors and well-defined business plans, the group is applying its institutional-grade underwriting to deliver an attractive loan product in todays market, positioning itself as a compelling capital partner for sponsors seeking both efficiency and flexibility.
Loan Characteristics
- Check Sizes: $10MM–$50MM
- Typical Loan Term: up to 3 years (extension options available)
- Pricing: SOFR+ 275–375 bps
- Target Debt Yields: 7.5%–8.5%, higher for transitional assets or less experienced sponsors
- Leverage Parameters: up to 75%-80% LTC subject to market and sponsorship profile
Execution & Flexibility
This lender’s competitive edge lies in their ability to underwrite and close quickly, often within 30 days of term sheet signing. Key aspects of deal profiles that allow this lender to get more aggressive on their loan product include:
- Preference for top 25-50 MSAs
- Demonstrated sponsor experience in specific submarkets
- Sponsor Net Worth and Liquidity
Their underwriting is focused on debt yields and leverage. While other focuses of theirs revolve around sponsorship quality and solid business plans.
Conclusion
For experienced multifamily sponsors in need of a competitively priced and leveraged loan product for a value-add multifamily acquisition, this lender will be a compelling option. Their capital is best suited institutional style deals, that have strong return profiles, but are falling below the institutional check size range, or that have some nuanced underwiring requirements.
If this capital source may be of interest, book a call to discuss a potential capital arrangement.
| Capital Types | Senior Bridge Debt |
| Geography | National footprint, focused on primary and secondary markets |
| Property Types | Multifamily, SFR, BTR, Student-housing |
| Use of Funds | No ground-up; light-to-moderate value-add only |
| Sponsorship | Focused on sponsorship with demonstrated experience and sufficient NW and liquidity |
| Check Size | $10MM to $50MM |
| Recourse | Primarily non-recourse; can include carry/comp guarantees on value-add |
| Term | Up to 2-5 years (plus extensions) |
| LTV / LTC | Up to 75-80% LTC (subject to debt yield requirements and markets) |
| Pricing | SOFR + 275–375 bps |
| Lender Points | 1 in, 1 out |
| Underwriting Criteria | 7.5%–8.5%+ depending on market and experience |
| Recourse | Primarily non-recourse; can include carry/comp guarantees on value-add |
If this capital source may be of interest, book a call to discuss a potential capital arrangement.
Read our last Capital Spotlight: “Preferred Equity up to 80% LTC with Flexible Senior Debt Compatibility”