Stonehill’s commercial real estate lending is still going strong after a record year in 2022. Completing $1.2 billion in real estate investments last year, the company is on track to meet its 2023 goals and already has $300 million in transactions closed or under contract.
The ongoing market volatility in the banking sector has caused significant dislocation in the capital markets, impacting companies’ ability to complete their business plans. Stonehill is filling the void left by banks and the syndicated market, which remain on the sidelines on all forms of real estate lending. In fact, lenders like Stonehill are becoming increasingly essential to commercial real estate investors and owners as traditional capital markets fail to provide the necessary financing for those in need. In addition, in today’s economic environment, borrowers need access to the liquidity required to conduct their business operations.
Stonehill’s commercial real estate originations across permanent loans, bridge loans, construction loans, mezzanine loans and preferred equity investments are consistent with its investment philosophy of deploying capital in a disciplined manner while providing ownership groups thoughtful capital solutions and, importantly, the certainty of execution.
Bridge loans, in particular, are of paramount significance in present-day capital markets; they enable buyers or borrowers to access short-term financing until permanent capital is obtained, thus providing a temporary yet vital fix while mitigating the risk of any financial disruption experienced by owners and investors.
Notable is Stonehill’s ability to provide construction financing. In this dislocated capital markets environment, securing a construction loan can be a complex and challenging process, but Stonehill has the lending solutions, financial capacity and development expertise to complete these transactions.
Additionally, Stonehill has stepped up to fill this gap by providing flexible terms and higher loan-to-value ratios than most traditional sources of capital, allowing investors and owners greater financial freedom.
Stonehill has completed transactions in various real estate sectors, including hotel, mixed-use development, retail center and land development. These transactions further demonstrate Stonehill’s ability to provide tailored financing solutions to meet the needs of real estate owners in different sectors.
Stonehill transactions that have closed over the past six months include:
- Mixed-use developments
- Retail centers
- Land development
- Multifamily
- Hotels
Notably, Stonehill features more personalized service offerings that seek out unique investment opportunities tailored to borrower needs – an element lacking from conventional banking products. Consequently, the emergence of our funding sources has been instrumental in driving progress within the CRE sector despite current market conditions.
The company’s ability to provide tailored financing solutions in different sectors has positioned it well to help real estate owners navigate the challenging lending market and execute their business plans. With a target of more than $1 billion in transactions for 2023, Stonehill is poised for continued growth in the coming years.
To discuss lending options, contact Daniel Siegel, president Stonehill CRE at dsiegel@stonehillsc.com, 770.367.0629.