Transitional, Bridge and Event Driven, and Stable Cash Flow platforms enable 3650 to accommodate wider range of borrower needs
Expects to originate approximately $500 million in transitional loans in 2023
MIAMI–(BUSINESS WIRE)–3650 REIT (“3650”), a nationwide commercial real estate lender originating and servicing a $13.1 billion portfolio of loans for relationship borrowers, today announced the launch of its new Transitional Lending platform, which is focused on originating transitional loans for borrowers pursuing recapitalizations and other select transactions. The platform’s launch allows 3650 to now offer borrowers the full spectrum of lending products across the property life cycle in a market where banks and other alternative lenders are pulling back.
Joining 3650’s existing Bridge and Event Driven (BED) and Stable Cash Flow platforms, the Transitional Lending platform offers borrowers flexible loan structures for cash-flowing or newly constructed projects with a clear path to stabilization. The new platform, which is spearheaded by Nishant Nadella, 3650 Managing Director and Head of SASB & Transitional Lending, is expected to originate approximately $500 million of transitional loans in 2023.
3650 REIT Co-Founder and Managing Partner Toby Cobb stated, “In today’s uncertain capital markets environment, we feel it is critical to offer borrowers a range of lending options to accommodate the full breadth of transactions that are being completed. This new platform represents another important and exciting step to fuel continued growth, as we utilize our team’s leadership experience through multiple real estate market cycles to find opportunities that meet our investment criteria. We are proud to now offer commercial real estate sponsors lending options across the entire property lifecycle to accommodate any need they might have.”
Loans originated from the Transitional Lending platform will have market-priced interest rates, ranging today from SOFR+350 to SOFR+550 depending on property type, leverage profile, sponsor and business plan. 3650’s approach is unique in that, for the life of the loan, it holds each and every loan it originates on its balance sheet, acts as the loan servicer, and provides high-touch asset management that is vital for transitional borrowers.
“The Transitional Lending platform fills a crucial financing gap for borrowers in this part of the real estate cycle,” said Nadella. “Importantly, these loans will offer borrowers bespoke, short-term financing solutions as they navigate today’s challenging financing markets along with property specific business plans. Now that 3650 has the infrastructure and team in place to fund these projects, we look forward to booking our first loans on the new platform in 2023.”
3650 ended 2022 with $1.66 billion in loans originated from its BED and Stable Cash Flow platforms. Most recently, the firm originated a $76.5 million construction loan to finance the completion of Elevate Apartments, a 293-unit, eight-story multifamily property located at 560 E. Dania Beach Blvd. in Dania Beach, Florida.
About 3650 REIT
3650 (pronounced “Thirty-Six Fifty”) REIT is a nationwide commercial real estate lender originating and servicing portfolio loans for relationship borrowers in addition to other debt financing opportunities. 3650 REIT’s highly differentiated investment process, national scale, vertically integrated platform and rated special servicer status enable it to deliver tailored financing solutions, high-touch service and reliable, customer-focused outcomes. Additionally, 3650 REIT’s ability to retain the risk on each investment allows it to closely manage its portfolio. Co-Founders and Managing Partners Toby Cobb, Justin Kennedy and Jonathan Roth have played leading roles in the evolution of the CRE debt markets. Headquartered in Miami, Florida with offices in New York, Los Angeles, Dallas, Atlanta and Nashville. For more information, visit: www.3650REIT.com.
THIS INFORMATION DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY, AN INTEREST IN ANY JURISDICTION.
Greg Michaels, ICR for 3650 REIT
[email protected] | 646-677-1836