BridgeInvest closes $200M fund for construction and short-term financing

Fund marks its second, and it is planning to launch a third fund by the end of the year

May.May 07, 2019 02:45 PM
From left: Alex Horn, Ian Glaser, and Jon Gitman

From left: Alex Horn, Ian Glaser, and Jon Gitman

UPDATED MAY 7, 3:55 p.m.: BridgeInvest, a Miami-based private lender, is banking on growing demand for short-term financing.

It just closed its second fund with a total capitalization of $200 million and $150 million in equity raised. The fund marks the firm’s second fund, which is more than double the size of its first, which had a total market cap of $100 million. The company now plans to launch a third fund before the end of the year, which will be structured as a real estate investment trust, according to Ian Glaser, a partner at BridgeInvest.

BridgeInvest provides ground-up construction loans and short-term loans in the Southeastern United States and Texas. It specializes in value-add deals where there is limited or no cash-flow, customized terms and short time frames. The company has said it is able to provide loans that are more customizable than what a conventional bank would provide. In the future, the firm is also looking to provide loans in the Midwest, according to Glaser.

BridgeInvest has had no principal losses to date on its loans since its founding in 2011, according to a press release. Last June, it provided Benjamin Norton’s Design Development Partners a $28 million loan from for its mixed-use Design 41 project in the Miami Design District.

In January, the company provided Property Markets Group a $33 million pre-development loan for the Waldorf Astoria Hotel & Residences Miami.

The company’s specialty bridge lending program offers loans between $3 million and $50 million with interest rates between LIBOR plus 5.5 percent and LIBOR plus 7.99 percent. It offers construction loans between $5 million and $50 million with the same interest rates as its bridge lending, according to its website.

Increasingly, short-term bridge lenders like BridgeInvest are becoming more popular as banks back away from making customizable loans. Many banks have also stepped back from doing ground-up construction lending since the last recession, leaving nonbank lenders to fill this void.

Related Articles

Shoma Group CEO Masoud Shojaee and a rendering of Ten30 South Beach

Shoma nabs $18M construction loan for condos near Lincoln Road

Rendering of Vox Miami

Treo Group scores loan for mixed-use student housing project in South Miami

Rendering of Wynwood 28 and Laurent Morali 

Kushner lands $18M loan for Wynwood projects

Rendering of Grand Station project, Oscar Rodriguez, Alex Rodriguez, and Ricardo Vadia (Credit: Michael Loccisano/Getty Images)

Grand Station tower project in downtown Miami scores $53M loan

Matt Rieger and a rendering of Paradise Lake Apartments

Developer scores financing for West Kendall affordable housing project

Wynwood 25 and Wynwood Annex with Jon Paul Perez and Jonathon Yormak (Credit: East End Capital/Related Group)

Related, East End score $136M refi of Wynwood projects

Arnaud Karsenti, Michael Adler and the Link at Douglas

Douglas Station project scores $99M loan for second tower

These real estate power players are involved in 2019’s juiciest lawsuits (Credit: Getty Images)

Here are South Florida’s juiciest lawsuits of 2019