Development markets from New York to Los Angeles have some new money to play with.
Silverstein Capital Partners, Larry Silverstein’s real estate lending operation, has raised another $2 billion, the firm announced Monday.
The firm’s investments crisscross the U.S., including a $340 million loan last month for the Legacy Hotel & Residences in Miami — the third-largest construction loan ever issued in Florida — and a $236 million mezzanine loan in 2018 to JDS Development’s mixed-use tower at 9 Dekalb Avenue in Brooklyn.
Silverstein Capital launched in 2018 with backing from a sovereign wealth fund and a pension fund with “deep pockets.” Since then, it has issued around $2 billion in construction and condo inventory loans.
The new money comes from those two investors as well as three new ones, whose identities were not listed on the venture’s limited filings with the Securities and Exchange Commission.
“SCP’s lending mirrors Silverstein’s overall business strategy of investing in large-scale, mixed-use projects in growing national markets,” said Silverstein Properties CEO Marty Burger. The new fund, like its previous ones, will focus mainly on construction loans, he added.
Silverstein is one of the many alternative investors that stepped in after strict regulations were placed on banks in the wake of the financial crisis. The firm initially targeted construction lending, noting that the sector was still dominated by traditional banks.
It’s been a hot winter for alternative lenders. In November, Churchill Real Estate raised $1 billion from foreign investors for credit lending, while Madison Realty Capital has put eye-popping sums to work in a growing number of cities.