Capital Spotlight – Highlighting featured capital investors. We regularly publish the detailed criteria of our most unique real estate capital sources.
Institutional Middle Market Lender with Discretionary Insurance Capital
Valencia Realty Capital recently connected with an established middle market lender that has been active for over a decade. This group’s experience has led to their ability to structure a variety of debt products and execute very quickly with experienced sponsors. Backed by discretionary insurance capital through a joint venture with a major life co platform, this lender is a great option for established middle market real estate entrepreneurs.
With a leadership team comprised of seasoned industry veterans from top global real estate platforms, the firm has sharpened its focus on providing bespoke, deal-specific lending solutions while staying geographically agnostic. Leveraging discretionary capital and strategic institutional partnerships, this lender offers bridge, construction, and permanent products while maintaining the speed and flexibility sponsors require in today’s market.
Product Characteristics
- Deal Size:
- Discretionary Insurance Capital: $15MM–$100MM
- Large Loan Program: $100MM+ (Separately managed institutional capital with upfront approval process)
- Loan Types: Floating or fixed-rate options across:
- Bridge Loans
- Construction Loans (Ground-Up & Completion)
- Permanent Loans
- Loan-to-cost: Up to 75% LTC (targeting 65%-70% stabilized LTV)
- Pricing:
- Bridge:
- Fixed Rate: 8% – 8.2%
- Floating: SOFR+ 400-450
- Construction:
- Floating: SOFR+ 550-650
- Bridge:
- Recourse: Primarily non-recourse, with limited recourse or completion guarantees as needed
- Prepayment Flexibility: Typically 24-month minimum interest.
Flexibility and Structure
- Geography: Nationwide
- Asset Classes:
- Multifamily (including value-add and build-to-rent)
- Industrial
- Hospitality (in select markets)
- Vintage Flexibility: Will consider 1970s and newer
- Underwriting Focus: Proforma un-trended stabilized debt yield is the primary sizing metric; targeting ~10% stabilized debt yield on most deals
Bespoke Lending Approach
This lender specializes in customized financing solutions, structuring each deal around the asset’s business plan. While stabilized or light-value add assets may be better suited for CMBS, life co, or agency execution, this group thrives in complex or transitional situations where flexibility is required.
Their dual-lane capital strategy balances discretionary insurance capital with separately managed institutional funds providing sponsors with a unique combination of certainty, scale, and available structures. From $15MM bridge loan’s to $150MM construction facilities, this lender can scale its capital to match the project’s needs.
Speed & Execution
- Term Sheet Process: Soft terms provided quickly, with a focus on the proforma stabilized debt yield and overall business plan
- Closing Timeline:
- Typical: 45 days
- Expedited: As fast as 30 days for time-sensitive deals
Sponsor Requirements
- Experience: Preference for established sponsors with a proven track record in the relevant asset class
- Equity Contribution: Flexible but requires a meaningful contribution
- Recourse: Primarily non-recourse, though limited recourse or completion guarantees may apply based on deal complexity
Conclusion
With deep discretionary insurance capital and the ability to scale into larger institutional deals, this lender offers flexible, tailored financing solutions across multiple asset classes. From value-add multifamily to build-to-rent projects and hotel construction, their willingness to structure around each deal’s story sets them apart in the middle market lending space.
Their combination of fixed and floating-rate options, broad geographic reach, and fast execution timelines make them a valuable capital source for established sponsors. As the market continues to shift, this lender remains well-positioned to capitalize on complex opportunities and support sponsors through every stage of the real estate cycle.
If this capital source may be of interest, book a call to discuss a potential capital arrangement.
| Capital Types | Senior Bridge, Construction, and Perm Debt |
| Geography | Nationwide |
| Asset Classes | Multifamily, Industrial and Hospitality |
| Vintage | 1970’s + |
| Deal Types | Value-add, Ground-Up ($25MM+), Construction Completion |
| Leverage | Up to 75% LTC (Target 65%-70% Stabilized LTV) |
| Sponsorship Requirements | Experienced Sponsors with Strong Track Records |
| Collateral Requirements | First Mortgage |
| Check Size | $15MM–$100MM+ |
| Cost of Capital |
|
| Underwriting Highlights | Proforma Stabilized Debt Yield (~10%) **subject to asset class and market |
| Term | 3 – 5 Years (Fixed or Floating) |
| Closing Time Frame | 30-45 days |
If this capital source may be of interest, book a call to discuss a potential capital arrangement.
Read our last Case Study: “~$15MM+ Senior Stretch Bridge Loan for 110-unit Naples Multifamily Acquisition”