🏨 🌿Resort Greens to Green Rush: Goldman $750M & $10M 4Front loans

Good Morning TIM Enthusiasts

Last week was a high-stakes chess match in CRE, ABL, and Growth Capital. From Goldman Sachs' $750M refi to First Citizens Bank's $672M battery play, the market rewarded innovation but punished missteps like Rite Aid's bankruptcy. Lenders are recalibrating, with a tilt toward small-balance equity and gap financing. Alternative lending like mezzanine and bridge loans are on the rise, signaling traditional financiers' nuanced risk aversion. Stay tuned for a four-minute drill-down on the market's complex maneuvers.…PLUS a new bridge lender…in just 4 minutes!

Let’s get into it.

Top Weekly CRE Deals

• Goldman Sach’s group funds Trinity’s Grande Lakes $750M refi loan Read

• Citi & German American funds $410M for Fort Partners’s Four Seasons Read

• Dedeaux lands $190M from NY Life RE Investors for SoCal Logistics Read

• Scale Lending fires up $142M loan for Queens 521-unit project Read

• Kriss Capital boosts El-Ad loan to $130M for Boca luxury project Read

• 3650 REIT earmarks $72M for retail acquisition Read

• Värde Partners underwrites $66M for D.C. student housing refi Read

• Crayhill Capital Mgmt grants $50MM facility to E2M Ventures Read

• Capital One closes $36M loan for Spira Equity Partners in Alexandria Read

• CapRock Partners secures $32.9M for San Dimas CA industrial asset Read
  
  Extra, Extra

• Bellwether Enterprise $30M loan Read

• Live Oak $29M refi loan Read

• Amalgamated Bank $24M refi loan Read

• River Bank & Trust mixed-use $20M Read

• Colliers $11M refi HUD loan Read

• Nubridge $7.49M cash-out refi

• District Capital $3M life insurance loan Read

Summary
Last week's CRE financing was robust, headlined by a $750M renovation loan for Grande Lakes Orlando and a $410M refi for Four Seasons in Florida. Multifamily deals were notable, featuring a $142M loan for a Sutphin Blvd Equities Queens development and a $130M upsize for El-Ad’s Boca Raton condo project. Dedeaux Properties snagged a $190M refi for Ontario, CA warehouses. Despite economic uncertainty, liquidity persists, albeit with a shift towards floating rates and shorter tenors. Lenders are tweaking their product mix, focusing on small-balance preferred equity and gap financing. This adaptability is driving market demand. Investor sentiment pivoted from industrial (2 weeks) to hospitality (last week), indicating fluid sector confidence. Last week's larger deals suggest a capital concentration in 'safe-haven' assets, potentially marginalizing smaller investors. The uptick in alternative lending like mezzanine and bridge loans reveals market flexibility and risk aversion among traditional lenders.

▲ Winners:
◦ The $750M Orlando resort deal exemplifies that stabilized, cash-generating assets from REITs still secure attractive refinancing despite market headwinds.
◦ A strong $142M Queens loan signals that multifamily lending remains robust despite market volatility.

▼ Losers:
◦ Alternative lenders' focus on larger deals has squeezed liquidity for small loans, making recapitalization tougher for small-balance investors.
◦ The shift towards larger deals in a turbulent market narrows the breadth of capital offerings available for small-balance lenders.
◦

Top Weekly ABL and Growth Capital Deals

• First Citizens Bank arranges $672M for Plus Power battery projects Read

• BMO Bank amends and unlocks $200M for Vintage Wine Estates' Read

• Bank of America expands Target Hospitality credit to $175M Read

• AVITA Medical secures up to $90M credit facility from OrbiMed Read

• Mammoth Energy nails $75M refi with Fifth Third Bank Read

• First Citizens Bank closes $66M for consumer product companies Read

• Wells Fargo grants Graham Corporation with a $50M refi revolver Read

• Gibraltar backs Revolution Foods with a $20M credit line Read

• Capteris extends a $15MM lease line to a global One Manufacturer Read

• 4Front Ventures secures a $10M expansion loan for Cannabis operations Read
  
  Notables

• Minnesota EDA $10M Cannabis loan Read

• Republic Business Credit $6M ABL Read

• InterNex Capital $1.5M facility Read

Insight Summary
Last week marked a surge in hefty loan facilities spanning multiple sectors. First Citizens Bank in Texas orchestrated a $672M loan for Plus Power's battery storage projects. Vintage Wine Estates revamped its credit terms with BMO Bank, netting a $305M loan. Target Hospitality also upped its credit facility by $50M to $175M. These deals signify capital funneled into industries like energy storage and wine production. Locations also varied, underscoring geographical diversity in investment. The funds are earmarked for various uses, from infrastructure build-out to working capital. Despite smaller deal sizes than the prior week, increased deal count and diversity hint at a cautious yet expansive capital strategy. A geographic lean towards Texas emerged, flagging the state as a burgeoning investment nexus. This suggests a multifaceted financing landscape with a potential new hub in the Lone Star State.

▲ Winners:
◦ Renewable energy developers will benefit from an evolving funding landscape focused on storage; being shovel-ready for capital influx is crucial.
◦ As cannabis inches toward legalization, niche lenders can differentiate themselves with specialized industry knowledge that mainstream banks can't offer.

▼ Losers:
◦ Oil & gas firms face a capital shift toward renewables; strategic partnerships in clean energy and risk hedging are now imperative.
◦ For crypto lenders, navigating regulatory waters and fortifying operational controls are key to sustaining credibility in a turbulent market.

Lenders

• Main Street amps up its SPV Credit Facility from $255M to $430M Read

• Mercatus Finance debuts cash flow lending, backed by Arena Investors Read

• Audax Private Debt fuels Aquiline Capital's MDpanel launch Read

• Dun & Bradstreet and Lendio team up to fund small businesses Read

• Byline Bank leads Illinois in SBA 7(a) lending Read

Insight Summary
Last week saw over $1B in new CRE credit facilities and acquisitions, led by Main Street Capital's $430M senior credit expansion aimed at portfolio growth. New entrant Mercatus Finance is targeting $20-75M cash flow loans backed by Arena Investors. Tech partnerships emerged in Atlanta with Maast and Fintainium, focusing on embedded finance for ERP systems. Audax Private Debt in NY backed MDpanel, a workers' comp medical opinions platform, via a unitranche facility. Byline Bank maintained its dominance in SBA 7(a) and International Trade Loans in Illinois and nationally.

▲ Winners:
◦ Mercatus and similar lenders fill the financing gaps for middle market firms, offering options for growth and transitions.
◦ Specialty lenders can achieve scale and profitability by targeting lending niches that major banks overlook.

▼ Losers:
◦ Online lenders without digital integration risk losing market share to fintechs offering streamlined user experiences.
◦ Inner city SMEs could miss growth opportunities due to a lack of awareness of new financing options; targeted marketing is essential.

Market Summary & Insights
The past week experienced a surge in CRE, ABL, and Growth Capital financings, spearheaded by Florida, Texas, and California. Illinois was noteworthy for significant construction endeavors, such as Ravago's brand-new 500,000-square-foot Distribution Center. Regarding property purchases, Texas, Illinois, and California took the lead, highlighted by the 1.34-million-square-foot Big Lots distribution facility in Apple Valley. Chicago, Miami, and New York emerged as epicenters for CRE development and transactions.

Key Insights

⮞ Escalating distress in CRE debt, notably in the office sector, exposes lenders to risks with over $200B in debt teetering on distress.
⮞ October saw a decline in equipment finance confidence due to macroeconomic headwinds like inflation and recession risk.
⮞ Despite rising rates, multifamily properties retain investor appeal due to stable income and diversification.

😲 DIDN’T SEE THAT ONE COMING

• Rite Aid files for bankruptcy amid sales slump, opioid issues Read

• El-Gamal loses Margaritaville Times Square to foreclosure Read

• Lender seizes Houston, Dallas hotels following $56M loan default Read

• Lenders set sights on foreclosure of Uptown Dallas office tower Read

• CIM Group and Australian Fund relinquish 1440 Broadway to lender Read

• Pimco waves white flag on 20-hotel portfolio Read

• Newport RE's South Downtown assets face foreclosure Read

🤵 LENDER LOUNGE

Looking to close your CRE deal? This week’s Texas lender could help:

Time to Close: 1-3 weeks
Paperwork Required for LOI: PFS, Survey, Site plan, Pro Forma, Budget, The ask and property address
Min to Max Loan: $1M to $20M
Sweet Spot: $3M – $7M
Min FICO Score: N/A
Interest Range: 12% - 15%
Loan-To-Value: 60%
Origination Fee: 2 - 3%
Due-Diligence Fee: $12K-$15K depending on the cost of third-party reports
Collateral Requirements: Land, Retail, Industrial
Repayment Terms: 12-24 months
Pre-Payment Penalty: 6-month
Extension of Loan: Case-by-case
Geography: Only TX, CO, Southeastern US
Refinance into a longer-term loan: No 

Interested in diving deeper with this lender?

Contact us directly to:

⮞ Get access to essential details, including the lender's primary contact, email, phone number, and exclusive insights from our lender interviews.

⮞ Get direct introductions to lenders equipped to handle those time-sensitive deals. The cherry on top? You retain your entire commission and no added costs or fee-sharing on our end, ensuring your client's satisfaction.

⮞ Receive quarterly economic and industry updates to refine your strategies and boost your business.

⮞ Lastly, you're automatically entered into our monthly giveaways for a chance to snag fantastic prizes. It's a win-win situation!

ADVERTISE WITH US AND REACH OVER 5,780 SUBSCRIBERS 

Our newsletter is read by hundreds of finance professionals, real estate brokers and agents, investment bankers, CPAs, lenders, and business owners all over the US.

🔄 HELP SHARE TIM WITH YOUR FRIENDS AND NETWORK

If you found value in our newsletter today, please share TIM with your friends and colleagues. In return, we enroll you in our October prize drawing of airfare for two to any 23 vacation destinations in the continental United States. Plus, you get a free entry for every subscriber who joins our newsletter using your unique link below.

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 Time is Money should be considered tax, investing, or financial advice. This email and any other content we provide is 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 Time is Money is the personal opinion of our owners and/or staff – you should always conduct your own research.