Happy New Year Everyone

2025 first-week deals tell an exciting story, with over $3 billion in new energy and science projects showing how lending is evolving. Take Enlight's $550 million Roadrunner project—it's a perfect example of how lenders combine different financing types in innovative ways. What's interesting is how being environmentally friendly can now actually lower borrowing costs—companies that meet "green" goals receive better loan terms. The Genesis Marina Life Sciences deal is another clever example of how the loan can grow larger as its science company tenants become more financially stable. It's a more innovative way to finance growing research campuses that need room to expand.

Inside this week's top deals plus:
💚 Why ESG metrics became Wall Street's favorite new deal catalyst
🎯 How niche market mastery is unlocking institutional-scale capital
🔄 The clever way traditional CRE lenders are orchestrating hybrid financing
💎 How smart money is snapping up discounted debt CRE deals

Let’s dive in.

🔄HELP SHARE OUR NEWSLETTER WITH YOUR FRIENDS AND NETWORK

I hope you find value in today’s newsletter if:

1) You want to know what active CRE lenders are mainly financing
2) You want innovative insights/strategies to secure CRE debt financing.
3) You seek active Commercial Real Estate lenders to close your next deal.

By the Numbers

Top CRE Lenders
BNP Paribas, Crédit Agricole, Natixis CIB, Nord/LB, Brookfield, Natixis, Advantage Capital, Fannie Mae, Denham Capital, First Citizens Bank, Nord/LB, National Bank of Canada, SMBC, Blackstone, Bank of America, Apollo, JP Morgan Asset Management, North Bridge, Acore Capital, MF1, Mavik Capital, Hudson Bay Capital, Merchants Capital, MonticelloAM, Affinius Capital, Santander, Related, Deutsche Bank, Affinius Capital, and Starwood Property Trust, and Northwind Group

Largest single deal: $550 million (Enlight Renewable Energy's Roadrunner solar-plus-storage project)

Number of states involved: 20, spanning major coastal hubs (NY, CA) and high-growth Sunbelt/Mountain regions (TX, AZ)

Sectors financed: Battery Energy Storage, Multifamily ground-up, Self-Storage, Senior Living, Mixed-Use, Emerging Build-To-Rent, Life Sciences, Industrial, and Renewable Energy

Construction Loans
◾ Developer Jacob Landau: Secures $36.5M from Cross River Bank to erect a 119-unit Cypress Hills multifamily—20% affordable, plus ground-floor retail.
◾ Fisher Brothers: Clinches $161M C-PACE from North Bridge and $53M Senior from Acore to supercharge Area15 District in Las Vegas, marking Nevada’s largest-ever C-PACE.
◾ Hudson Companies: Grabs $73M via Santander & Related to build Pelham House—127 mixed-income units plus a new fire and police station in Westchester County.

Refinancing Loans
◾ KKR: Locks in $185M from Blackstone Real Estate Debt Strategies to refi a 15-property, 1.2M-sq.-ft. self-storage portfolio in high-demand markets.
◾ CIP Real Estate: Snags $93.8M from J.P. Morgan Asset Management to refi the 809,230-sq.-ft. Broadway 101 Commerce Park in Mesa, Ariz.
◾ Crystal Springs Resort: Scores $68M with Deutsche Bank, keeping six golf courses and three ski hills near Hamburg, N.J. on solid footing.

Green/ESG Loans
◾ Enlight (Roadrunner Project): Commands $550M from a global bank consortium (BNP Paribas, Crédit Agricole, Natixis, Nord/LB) for a 290MW/940MWh solar-plus-storage near Tucson, Ariz.
◾ Origis Energy: Locks $415M (Natixis CIB + Advantage Capital) for Swift Air Solar in Texas, fueling zero-emission power for Occidental’s direct air capture facility.

Acquisition Loans
◾ JV 601W & David Werner: Taps $62.5M from Northwind Group to acquire and lease up 303 E. Wacker in Chicago at a 65% discount to prior pricing.
◾ IPA Capital Markets: Arranges $174M in JV equity + debt for the 348-unit 55 Riverwalk Place in West New York, with Bank of America in the stack.
◾ SkyREM: Bags $170M five-year, fixed-rate from Apollo affiliates to acquire 2.5M sq. ft. of industrial and warehouse assets across seven states.

Bridge Loans
◾ Neology Development Group: Nabs $63.5M from Starwood Property Trust to pay off construction debt on Fourteen Main Street Residences in Miami.
◾ Veneto Capital Management: Locks $60M from Madison Realty Capital to seize a nonperforming Las Vegas multifamily note, closing in just 30 days.
◾ Wellpointe Inc.: Inks an $87.15M bridge with Monticello, refinancing and expanding boutique-style assisted living under its Fresno Guest Homes brand.

Last Week’s Analysis

🎭 The Institutional Adaptation Game
In a remarkable evolution of market dynamics, institutional lenders are demonstrating unprecedented flexibility in structuring deals for transitional assets. A compelling case study emerges from Blackstone Real Estate Debt, providing a $185M refinancing package for KKR's self-storage portfolio (Deal). What's particularly fascinating is how this deal represents a shift in how institutional capital views traditionally "alternative" asset classes - the self-storage penetration rate's projected growth to 16% of households has transformed what was once considered niche into an institutional-grade investment thesis.

Strategy Tip: Package transitional assets with clear demographic tailwinds and operational expertise to attract institutional capital traditionally focused on stabilized assets.
Capital Sources: Investment Bank Lending Arms, Global Alternative Asset Managers (E.g. Blackstone Real Estate, Apollo Global Management)

🌐 The Rise of Strategic Hybrid Financing Structures
Sponsors are increasingly orchestrating hybrid financing packages that blend multiple capital sources to optimize their capital stack, a fascinating shift from traditional lending models. A standout example is Estuary Power's $340M financing for the Escape project (Deal), which masterfully combined tax equity from Morgan Stanley Renewables, a tax equity bridge loan from multiple banks (First Citizens, Nord/LB, National Bank of Canada), and a construction-to-term facility from Denham Capital. This sophisticated approach is about creating a financing symphony in which each instrument plays its perfect part.

Strategy Tip: Consider structuring deals with complementary capital sources that can each optimize different aspects of the project (e.g., construction, tax benefits, and long-term hold) rather than seeking a single-source solution.
Capital Sources: Tax Equity Investors, Infrastructure Funds, Commercial Banks (E.g. Morgan Stanley Renewables, Bank of America Renewable Energy Finance)

⚡️ Megawatt Capital
In today's rapidly evolving renewable energy sector, developers are innovating financing structures by combining construction-to-term debt with tax equity and bridge financing—often exceeding $150M per project. Risk mitigation comes through specialized integrators and bankable PPAs, while major lenders like SMBC and Santander bundle green loans (Deal) with bridge capital to accelerate development in key markets. Developers showing operational sophistication through engineering expertise and project management can secure better terms, while institutional investors see these deals as stable ESG opportunities that hedge against market volatility.

Strategy Tip: To stand out, craft an offtake contract or resource-adequacy agreement that blends merchant upside with guaranteed capacity payments. Banks adore stable revenues and the potential for yield growth.
Capital Sources: Global commercial banks with ESG or green-lending arms, specialized tax equity investors (E.g., SMBC, MUFG)

🔍 Distressed Debt Treasure Hunt
In today's tight credit market, private investors are strategically acquiring discounted nonperforming loans using specialized note-on-note financing. This requires rigorous underwriting of both collateral fundamentals and foreclosure frameworks. Lenders like Madison Realty Capital (Deal) are backing these acquisitions within 30 days to capture opportunities. Note buyers can either restructure debt with borrowers or foreclose to gain control of assets, making this strategy particularly attractive for private equity firms with strong asset management capabilities seeking to acquire real estate below market value.

Strategy Tip: Present a crystal-clear path to resolution—whether that’s a settlement, recapitalization, or foreclosure—to reassure your note-on-note lender that you’ll optimize and exit the position at a price that comfortably covers their loan.
Capital Sources: Distressed-debt funds, opportunity funds focused on special situations (E.g., Madison Realty Capital, Fortress Investment Group)

The Real Estate Professional’s Secret Weapon - Land id™

Discover extensive nationwide private parcel data, create & showcase powerful, shareable, interactive maps of any property: Fast, Easy and Mobile, with Land id™.

With the brand new streamlined Property Info Cards, Land id™ brings industry leading data and contextual layers to the forefront in a single tap or swipe.

Try Free For 7 Days Today

🏆 Winners 
◾ Energy/Battery Storage Projects: Multiple successful large financings, including Estuary Power's $340M package and Aypa Power's $190M deal, showing strong lender appetite for renewable infrastructure
◾ Life Sciences Facilities: Phase 3/Bain Capital's Genesis Marina secured $484M from Brookfield, demonstrating continued confidence in life science real estate
◾ Industrial Development: Multiple wins, including ForeFront's $77.4M construction loan and North Palisade's $65M financing, indicating sustained demand for quality industrial assets

❌ Losers 
◾ Struggling Office Properties: 303 E Wacker in Chicago traded at a 65% discount to the previous purchase price, requiring a creative financing structure from Northwind
◾ Non-Core Retail: Properties requiring significant renovation or repositioning face higher rates and shorter terms, as seen in BWE's $20M bridge loan for Merced retail redevelopment
◾ Overleveraged Multifamily: Properties with existing high leverage seeing refinancing challenges, leading to increased use of preferred equity and mezzanine structures as demonstrated in several deals

📝 Current Tips For Borrowers

1. Future-Proof Debt Structuring: Instead of traditional single-use underwriting, create "adaptive use frameworks" showing how your property can pivot between multiple uses. (seen in the Genesis Marina financing)

2. ESG Arbitrage Strategy: Beyond basic green features, develop comprehensive ESG narratives that align with specific lender mandates and consider "ESG stacking" - combining multiple sustainable features to qualify for premium terms (as seen in the Estuary Power deal).

3. Target Hidden Stability Markets: Second-tier markets with primary healthcare or educational anchors are seeing surprisingly strong financing terms. These "hidden stability markets" often offer better risk-adjusted returns than primary markets while attracting less institutional competition.

4. "Digital Twin" Premium: Consider investing in digital twin technology (virtual replicas for operational optimization) before seeking financing. Lenders increasingly view this as a proxy for operational sophistication.

5. Infrastructure Alpha Play: Position assets to benefit from the $1.2 trillion infrastructure bill rollout. Properties within 3 miles of major infrastructure projects are seeing premium terms due to perceived future value appreciation.

💡 Financing & Referral Opportunities for Brokers & Lenders

1. Location, Location, Location: Tucson, Brisbane/Redlands/Fresno (CA), Fort Bend/Fort Worth (TX), West New York (NJ), Mesa, Las Vegas, New Haven, and Miami

2. Referral Partners for Brokers:
   ◾ Property Insurance Brokers: They know which properties are facing coverage issues and might need refinancing
   ◾ Utility Consultants: They're first to know about significant power upgrades that could signal a new development
   ◾ Environmental Engineers: They're involved in early stages of project planning
   

3. Financing Opportunities
   ◾ Properties that can support both logistics and light manufacturing with heavy power requirements and advanced connectivity infrastructure
   ◾ Properties near growing hospital systems that could be prime candidates for medical office conversion
   ◾ Retail space that can convert to experiential uses or residential units that can flex between apartments and short-term stays

New Loan Programs/Lenders
◾ Mesirow acquired Bastion Management to expand its strategic alternative investments. Read
◾ eCapital strengthens its technology solutions and market leadership by acquiring LSQ. Read
◾ PAObank and Mybooster introduce a cross-border e-commerce revolving loan for global entrepreneurs. Read


😲 Didn’t see that one coming

◾ A Berkshire Hathaway-owned lender is sued for allegedly unaffordable mortgages through claims of predatory practices. Read
◾ Yvette Wang receives a 10-year prison term for a $1B fraud scheme tied to exiled tycoon Miles Guo through a high-profile federal conviction. Read
◾ Hensel Phelps is accused of defrauding Chinese EB-5 investors in a Baltimore hotel project through alleged misuse of funds. Read
◾ Ligado files for Chapter 11 and finalizes a deal with AST SpaceMobile for MSS spectrum usage. Read
◾ Denise Richards and her husband, Aaron Phypers, face legal action for alleged unpaid debts to creditors. Read

ADVERTISE WITH US AND REACH OVER 3,500 SUBSCRIBERS

Our newsletter is read by hundreds of finance professionals, executives, brokers, agents, investment bankers, CPAs, lenders, CFOs, CRE Developers, Investors, lenders, and business owners worldwide.

We would love your feedback on what information you want more of. If you have anything interesting to share or a deal that we can help with, reach out to us by sending us an email at [email protected]. Thank you for reading, and enjoy the rest of your week.

Lastly, no content provided by Bridge Loan Guy or Loans, Lenders & Leverage should be considered tax, investing, or financial advice. This email and any other content we provide are for entertainment and education purposes only. We do not claim to provide tax, investment, financial, or other legal advice. Any content provided by Bridge Loan Guy or Loans, Lenders & Leverage is the personal opinion of our owners and/or staff – you should always conduct your own research.