Avant Capital Partners (“Avant”), a leading private commercial real estate lender, has reached agreement to create a programmatic joint venture with a Connecticut based investment management platform with assets under management in excess of $10 billion (the “platform”). The platform is an active investor across several credit strategies, including real estate debt, and has tapped Avant to originate, underwrite, close and manage loan investments from $5 million to $75 million on a nationwide basis.
Under Avant’s platform, the venture will originate bridge loans secured by property types that include multi-family, light industrial, warehouse, office and select hospitality and retail. The loan program is designed to finance properties that are being repositioned, newly constructed and in lease up phase, improved or otherwise redeveloped, or need a quick close. Each loan will be underwritten to a clear exit strategy thru conventional bank, agency or CMBS refinance for loan repayment. Additionally, the venture’s mandate allows Avant to acquire distressed commercial real estate debt.
The venture will be complementary to Avant’s existing capital base which includes allocations from family offices, foundations, life insurance companies and several credit facilities. Since inception, Avant has made over 100 separate loan investments including newly originated bridge loans and the acquisition of non-performing loans.
“We are excited to announce this venture with such a reputable, and well capitalized, debt investment manager,” says Adam Luysterborghs, Managing Partner at Avant. He adds that, “this pool of capital will enable us to execute on larger deals and at lower interest rates than we previously offered. Importantly, all debt investments originated under this program will be held on balance sheet and there are no plans to securitize any of the loans.”
Summary of terms:
– Loan amounts: $5,000,000 to $75,000,000
– Interest rates: LIBOR plus 450 to 750
– Up to 75% LTV; up to 85% LTC on a select basis
– One to three year terms
– Properties located nationwide, including urban, suburban and rural markets
– Property types: multifamily, industrial, office, hospitality & retail
Bernard Wolff, Avant’s portfolio manager responsible for the venture says, “We are actively quoting deals and will announce our first series of closings soon. This new source of capital will significantly enhance Avant’s product offerings to the commercial real estate community and provide the flexibility to target deals backed by both performing and nonperforming loans nationwide.”