Trending
Silverstein Properties is getting into real estate lending
Company will provide minimum $25M loans for all types of developments
Silverstein Properties is expanding into the world of real estate lending.
The new segment of the company will be known as Silverstein Capital Partners and provide loans for all types of projects, according to Bloomberg. The firm has partnered with a pension fund and sovereign wealth fund to provide capital for the new branch but has declined to name both.
The minimum loan size will be $25 million, and there is no maximum loan size. There is already a pipeline of deals in place for the venture, and Silverstein expects it to see annual returns of between 10 to 15 percent.
Silverstein’s major projects include 3 World Trade Center and the Four Seasons Hotel downtown. The company purchased ABC’s Upper West Side headquarters in July for $1.2 billion.
“There were a lot of banks that couldn’t handle the loans,” Silverstein CEO Marty Burger told Bloomberg. “We’re a developer at heart, and we usually do very large projects, and we found that there was just a gap in the financing markets where there were large loans needed for complicated projects.” [Bloomberg] – Eddie Small