Slate launches real estate lending platform with $500M target

Developer’s first loan funds LIC land deal

TRD New York /
Feb.February 05, 2018 07:00 AM

From left: Martin Nussbaum, 45-57 Davis Street and David Schwartz

Slate Property Group launched its own real estate lending platform with a goal of issuing $500 million in mortgages this year.

The venture, dubbed SPG Capital Partners, will originate only senior mortgages, Slate’s co-founder Martin Nussbaum said. The Midtown-based developer’s first deal is a $19 million mortgage to fund Solomon Feder’s acquisition of a development site at 45-57 Davis Street in Long Island City. The developer plans to build a 150-unit, 10-story residential project on the lot, which sits close to Court Square.

“There’s a bigger need for non-conventional financing in the marketplace,” Nussbaum said, citing banks’ reluctance to finance, for example, condo development.

Apart from construction and land loans, SPG plans to focus on transitional, bridge and condo inventory loans of up to 80 percent of a project’s value. Slate will pay for the loans with its own funds and through institutional partners.

Slate isn’t the first development firm to get into the lending game. RXR Realty, RFR Realty, Moinian Group and Kushner Companies all launched mortgage platforms in a bid to fill the void left as banks retreat from development and bridge financing.

“There’s no doubt the space has gotten more competitive,” Nussbaum acknowledged.

Four of the top 10 firms in The Real Deal’s January ranking of last year’s biggest construction lenders were nonbank lenders.

Founded in 2014 by Silverstone Property Group founding principal Nussbaum and David Schwartz, formerly of Madison Realty Capital, Slate quickly emerged as one of the city’s most active development firms. Its biggest deal to-date was the $390 million acquisition of the RiverTower apartment building in Manhattan in 2015.

Last month, Slate and Madison Realty Capital put a Kips Bay apartment portfolio up for sale, asking nearly $120 million.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
A mass timber project in Cleveland is now under construction and could be the nation’s tallest when completed. Harbor Bay Real Estate Advisors’ Intro development will rise nine stories with 298 residential units (Credit: Harbor Bay Real Estate Advisors)

Mass timber project in Cleveland could be nation’s tallest

Mass timber project in Cleveland could be nation’s tallest
Joy Construction’s Eli Weiss (left), Maddd Equities’ Jorge Madruga (top), and Drew Katz (right) with 20 Bruckner Boulevard in the Bronx (Getty; Google Maps)

“Dream” comes true for long-vacant Bronx ice house

“Dream” comes true for long-vacant Bronx ice house
“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space
 David Bistricer of Clipper Equity and 77 Commercial Street in Greenpoint (REIT and Google Maps)

Bistricer lands $386M construction loan for Greenpoint project

Bistricer lands $386M construction loan for Greenpoint project
109 East 79th Street and Victor Sigoura (Google Maps; Getty)

Victor Sigoura lands $133M construction loan for UES condo

Victor Sigoura lands $133M construction loan for UES condo
Photo illustration of Sen. Brian Kavanagh (Credit: Kavanagh by Albin Lohr-Jones/Pacific Press/LightRocket, Getty Images, iStock)

Lawmakers skip #CancelRent in favor of more modest bills

Lawmakers skip #CancelRent in favor of more modest bills
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...