NEW YORK and MINNEAPOLIS, July 20, 2021 / PRNewswire / – Gryphon Real Estate Capital Partners and CarVal Investors today announced the formation of a joint venture to provide senior multi-family bridging loans in primary and secondary markets The United States.
The Gryphon CarVal Multi-Family Loan Program (the “Program”) is designed to advance up to 85% of the capital in a single execution, which is facilitated by the program’s ability to close on the balance sheet. Targeted loans range from $ 20 million to $ 75 million with competitive market prices. Loan support and asset management will remain with the joint venture.
In advance of the announcement of the joint venture via $ 150 million The multi-family loan has been taken out or is on a signed term sheet. The program is prepared for deployment $ 1.0 billion or more in the next two years.
Gryphon and CarVal will target sponsors who focus on either value-add or leasing strategies. Value-add opportunities are cash flow properties that require time and capital to reposition, perform renovations, improve property operations, and increase rents. Leasing strategies are newly built properties that need time to stabilize and season cash flows before agency financing is secured or the property is sold.
“We believe this is a compelling time to enter the multi-family bridging loan market,” said Seth Cohen, a principal of CarVal Investors responsible for managing loan portfolio investments worldwide. “Our partnership with Gryphon is rooted in our common thesis that there is a long-term need for middle-income homes, particularly in the growing US markets.”
Paul Mullaney, Managing Director of CarVal Investors’ North American real estate business, added, “Gryphon has built an institutional, data-driven platform with extensive experience in multi-family lending that fits well with CarVal’s investment strategy.”
“We are excited to partner with CarVal as we launch this well capitalized and synergetic company,” said Angelo LoBosco, Managing Partner at Gryphon. “We look forward to expanding the Gryphon CarVal platform through the successful execution of our investment strategy.”
Jim Hopkins, a principal at Gryphon, added, “We believe the combination of Gryphon and CarVal will be a powerful force in the multi-family bridging loan market.”
About CarVal investors
CarVal Investors is an established global alternative investment manager focused on credit-heavy assets and market inefficiencies. Since 1987, the CarVal team has been navigating the ever-changing credit market cycles and investing opportunistically $ 128 billion in 5,525 transactions in 82 countries. Today CarVal Investors has approx. $ 10 billion in assets under management in corporate securities, loan portfolios, structured loans and hard assets. www.carvalinvestors.com
About Gryphon Real Estate Capital Partners
Gryphon is a relationship-focused private lender focusing on apartment buildings across the country. Founded in 2016, Gryphon has successfully used its client’s 30-year careers in real estate operations, development and financial structuring to establish a highly respected platform in the multi-family lending niche. www.gryphonrecapital.com
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SOURCE CarVal investors