MidPoint Capital Partners has launched a $500m (£375.8m) private real estate lending fund to offer short-term, senior secured bridge loans to real estate investors, in an effort to address a “financing gap”.
The new fund, MidPoint Capital LLC, will provide investors with access to private investments in projects requiring “timely” capital deployment across high-growth US markets, which are currently experiencing limited access to private financing.
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According to Michael Columbia, chief executive of MidPoint Capital Partners, real estate projects increasingly face delays due to the “time-consuming” approval processes of traditional lenders.
Meanwhile, traditional lenders often prioritise established clients and standard project types, which leaves investors seeking short-term, high-value bridge loans facing a financing gap, the commercial lender said.
The fund will deploy funds across 60 to 100 loans per cycle, with an average loan size of $5m, allowing for diversified allocations and structured lending opportunities.
It will “emphasise” loans with a maximum loan-to-value ratio of 75 per cent and focus on projects in commercial real estate development and acquisition financing.
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Total deployment is expected to hit approximately $1.5bn over a 36-month period.
MidPoint Capital LLC will maintain short-term, senior-secured loan structures, consistent with standard bridge loan protocols.
“Alternative lenders often charge rates between 12 per cent and 15 per cent, which can impact project feasibility,” Columbia added. “Our fund is intended to provide structured bridge financing while maintaining conservative underwriting standards, ensuring asset-backed security for each allocation.”
MidPoint Capital Partners specialises in commercial mortgages, hard money solutions and hotel loans, with clients in the US, Canada, Europe, the Caribbean, Central America, South America and Asia.
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