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
Nightingale's Elie Schwartz and Madison's Brian Shatz (Whale Square)

Nightingale buys Whale Square in Sunset Park for $84M

Nightingale buys Whale Square in Sunset Park for $84M
Investors worry that New York City’s battered commercial real estate sector is indicative of larger issues nationwide with hotels, restaurants and retail. (iStock)

New York’s CRE woes could spread nationwide: investors

New York’s CRE woes could spread nationwide: investors
Subversive CEO Richard Acosta (Photos via ICSC; iStock)

Riding high: Inception, Subversive to launch publicly traded cannabis REIT

Riding high: Inception, Subversive to launch publicly traded cannabis REIT
Gov. Andrew Cuomo announced that movie theaters in some New York counties can reopen, but NYC’s theaters are excluded for now. (Getty; iStock)

Cuomo: Movie theaters can reopen — but not in NYC

Cuomo: Movie theaters can reopen — but not in NYC
Blackstone’s Stephen Schwarzman, Roku CEO Anthony Wood and Coleman Highline in San Jose (Blackstone; Wikipedia Commons; Coleman Highline)

Blackstone buys Roku’s Silicon Valley office buildings

Blackstone buys Roku’s Silicon Valley office buildings
IKEA Chief Sustainability Officer Pia Heidenmark Cook (IKEA, iStock)

Ikea will buy back your old furniture on Black Friday

Ikea will buy back your old furniture on Black Friday
arrow_forward_ios

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

Loading...