⚖️ Gramercy's Half-Billion Litigation Lending Fund & PGIM's Incredible Week

Good Morning TIM Enthusiasts

Exciting Announcement Alert 🚨

We are revealing our two September grand prize giveaway winners on October 5, 2023.

Last week, we saw noteworthy CRE transactions underscored bullish industrial trends led by PGIM Real Estate, while ABL players like Gramercy Funds broke new ground with $552M in litigation financing. Värde Partners raised nearly $1.5B, heralding a seismic shift towards non-bank financing options. But that's not all—we also have insights on some surprise defaults and lender mergers that could change your strategies. Don't miss our deep dive into emerging hotspots like Denver and Kansas City and the sectors you should eye for your next big move! PLUS a new bridge lender, our lucky subscriber winner announcement, and the world’s tallest building…in just 4 minutes!

Let’s get into it.

Top Weekly CRE Deals

• PGIM Real Estate lends GLP Partners $333 million (More)

• Reznik Paz Nevo Trusts loans $111 million to Namdar Realty Group (More)

• Bank Ozk provides $97M construction loan to ViaWest Group (More)

• PGIM Real Estate gives $66M Refi loan to Logistics Property Co. (More)

• Customers Bank makes $64M Construction loan for Bronx Mixed-Use Development (More)

• Calmwater Capital & HC2 Capital provides $56M loan to Mosaic to build student housing (More)

• Bank of America loans $47M to Driftwood Capital for West Palm Beach hotel (More)

• Urban Standard Capital makes $34 million for a two-story Brooklyn Condo (More)

• Bridge Investment Group provides $33M to Arcadia Realty Trust (More)

• Bank of Princeton secures $31M Refi for CW Realty’s Brooklyn Apartments (More)

• Metro Credit Union provides a $27M Refi loan to FoxRock Properties (More)

• Rhode Island Bioenergy secures a $20M construction loan from East West Bank (More)

• PACE Loan Group extends a $6.2M C-PACE loan for a 391-room hotel (More)

• Bayview PACE secures $3.5M C-PACE loan for Columbia hotel expansion (More)

• Nuveen Green Capital finalizes San Antonio's biggest C-PACE transaction (more)

Insight Summary
PGIM Real Estate's aggressive financing in the industrial sector shows a bullish outlook on real estate and the broader economy. This suggests now may be a good time for CRE lenders and industrial property investors to scale up. Namdar Realty's opportunistic buying in NYC suggests that distress in the office market could be an entry point for investors with a long-term view. This opens up opportunities for equipment and ABL lenders to get involved in office retrofits and renovations.

▲ Winners:
◦ Industrial developers are flush with ample capital, paving the way for new large-scale projects
◦ Opportunistic office investors have a window to secure financing for value-add deals, especially in markets showing signs of distress
◦ Mixed-income multifamily investors/developers can take advantage of the available construction loan financing

▼ Losers:
◦ Waning demand for ultra-high-end units makes lenders hesitant to finance new projects for luxury condo developers
◦ Stagnant assets and high vacancies limit traditional office landlords' financing options, complicating loan acquisition without a clear repositioning strategy
◦ Namdar's opportunistic buying of distressed office properties indicates a volatile market for Office space investors; caution is advised.

Top Weekly ABL and Equipment Deals

• Gramercy Funds extends $552M in financing for environmental litigation (more)

• Global Infrastructure Partners invests $450M in Vantage Data Centers via a term loan (More)

• MSG Entertainment boosts its revolving credit facility from $50M to $150M (More)

• Siena Lending Group finalizes a $20M credit facility for a specialty aerospace manufacturer. (More)

• BizCap arranges a $17M asset-based revolving credit line for Poindexter Nut Company(More)

• Amerisource secures a $14M recap and working capital loan for an energy company (More)

• Ocean Bank extends a $10M working capital facility (More)

• MidCap Business Credit grants $8M credit facility to a manufacturer (More)

• SG Credit Partners invests $6M in senior debt for Folloze (More)

• Valeo Pharma lands a $5M credit facility with Accord Financial (More)

• Oxford Commercial Finance extends a $5MM ABL line to a healthcare tech firm. (More)

• First Business Bank grants Smart Bus Platform a $2.5M factoring loan (More)

• InterNex Capital extends a $1.5M facility to a staffing firm (More)

• Republic Business Credit grants a $1M loan to an Illinois children's book publisher (More)

Insight Summary
The surge in litigation financing indicates a paradigm shift in how legal battles against corporate giants are funded, potentially creating a new asset class for alternative investors. GIP's big move into Vantage indicates that institutional money is aggressively chasing data center infrastructure. If you're in the fintech or AI sectors, this is your cue to consider partnering for scalable data solutions. Siena's aerospace deal shows that asset-based lenders are diversifying collateral types. This opens doors for businesses in specialized industries to consider asset-based lending a viable financing option.

▲ Winners:
◦ The success of Gramercy in backing Pogust Goodhead opens up a new avenue of high-value, high-impact opportunities for litigation lenders
◦ Lenders eagerly support data center firms, capitalizing on the booming demand for digital infrastructure and cloud solutions
◦ Event-centric businesses like concert halls and conference planners are successfully landing fallback financial cushions and credit lines

▼ Losers:
◦ Crypto firms face reluctance from lenders due to the volatility of cryptocurrency assets
◦ As alternative financing gains traction, traditional banks may find themselves outmaneuvered by more agile and specialized lenders
◦ Distressed retailers face caution from lenders wary of providing financing due to struggles in the retail sector

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Top Lender Credit Facilities

• Värde Partners secures nearly $1.5 billion to exploit asset-based lending opportunities (more)

• Maritime Partners secure a $600M amended warehouse financing deal (more)

• Encina Lender Finance extends a $25M senior credit facility to Sparrow Financial (more)

Insight Summary
Värde's successful capital raise signifies a strong appetite for non-bank lending, a trend gaining momentum since the Global Financial Crisis. Maritime Partners' deal shows that syndicated lending is alive and well. Encina's investment in Sparrow Financial indicates that lenders are bullish on fintechs that aim to serve underserved consumer markets.

▲ Winners:
◦ Specialty lenders are successfully raising capital and expanding their lending activities to underserved niches
◦ Fintech companies are securing funding for growth from flexible capital providers who understand their platforms and business models

▼ Losers:
◦ Regional banks are losing lending share to nimble specialty players who can better serve niche needs
◦ Lenders unable to customize loan structures beyond one-size-fits-all miss out on specialized deals

Market Summary
This week, New York, Los Angeles, and Miami emerge as hotbeds for lending opportunities. Oklahoma leads with the $2 billion American Heartland Theme development project, followed by New York’s $1.4 billion One Madison and Florida's $1 billion Highland Park Miami venture. Industrial and multifamily sectors flourish in smaller metros like Kansas City and Denver. Despite certain distressed assets, lending activity remains robust in specialized sectors like lab spaces and medical offices. In a market where traditional lenders exercise caution, private credit funds have seized the moment, amassing billions just this past week. This surge in capital highlights a robust demand for specialized lending and offers lucrative opportunities for well-calculated investments in specific sectors—contingent on meticulous underwriting.


Key Insights
⮞ Banks and lenders financing new projects in NY, CA, and FL stand to benefit the most
⮞ Construction lenders have increased opportunities with development projects across several sectors in locales like Texas
⮞ Lenders turn their focus towards Denver, Kansas City, and Brooklyn for robust non-traditional assets
⮞ Life insurance and bridge lenders are gaining prominence in multifamily financing
⮞ CRE and Equipment lenders target funding for modern industrial facilities in logistics hubs
⮞ As liquidity tightens, specialty finance platforms have the capital to expand factoring, equipment, and asset-based lending

NOTABLE LENDER MERGERS

• Wells Fargo and Centerbridge team up to offer loans to middle-market companies (more)

• Cape Cod 5 and Fidelity Bank's parent companies agree to merge (more)

• Velocity strikes a strategic financial partnership with Targeted Lending (more)

• Camino Financial and Fundation unite to create a comprehensive small business lending platform (more)
  

😲 DIDN’T SEE THAT ONE COMING

• Landmark View defaults on a $26M loan in LA (More)

• Oceanwide Plaza faces liquidation after creditor demands $175M repayment (More)

• Noble House declares bankruptcy, owing millions to foreign suppliers (More)

🤵 LENDER LOUNGE

Looking to close your Medical Receivable deal? This week’s NJ bridge lender could help:

Time to Close: 3 weeks on average
Paperwork Required for LOI: Financial Statements (P&L, Balance Sheet), Online Application, AR Aging Report, 12 months Collection History Report, and Monthly Payment Report
Advance Rate: 70-85%
Min to Max Loan: $100K-$10M (sweet spot is $250K to $5M)
Min Debtor Creditworthiness: No Minimum
Factor Fee: 1.5% to 2.5%
Credit Insurance: No
Termination Clause: Yes
Invoice Aging Criteria: 120 days
Reserve Release Period: Reconciliation happens every week
Due-Diligence Fees: $2,500 to $5,000 due with a signed term sheet
Collateral Requirements: Blanket UCC Lien on all business assets (this can be negotiated down to AR in some cases)
Repayment Structure: Recourse Financing
Repayment Terms: 2-year standard term
Geography: U.S. only
Industry Specialization: Healthcare

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