CarVal Investors, a global alternative investment manager, has formed a multifamily senior bridge loan joint venture with private lender Gryphon Real Estate Partners that expects to deploy at least $1 billion over the next two years in primary and secondary markets.
The joint venture, known as the Gryphon-CarVal Multifamily Loan Program, has already closed or signed term sheets on more than $150 million of multifamily loans. As of Thursday, three loans will have closed on multifamily properties in Chapel Hill, N.C.; Greensboro, N.C.; and Austin, Texas, according to CarVal Investors. Further details on the loans and the properties were not disclosed.
The loan program will be aimed at sponsors with value-add or lease-up strategies and is designed to advance up to 85 percent of the capital stack in a single execution facilitated by the program’s ability to close on balance sheet. Loans are expected to range from $20 million to $75 million with competitive market pricing. Loan servicing and asset management will be retained by the joint venture.
Gryphon is a private lender focused mainly on multifamily properties nationwide, and CarVal is a firm with offices in Minneapolis, New York City, London, Luxembourg and Singapore focused on distressed and credit-intensive assets and market inefficiencies.
Seth Cohen, a principal for CarVal Investors responsible for managing loan portfolio investments globally, said in a prepared statement the joint venture partners believe there is a long-term need for middle-income housing, particularly in growing U.S. markets, and that it was a compelling time to be active in the multifamily bridge loan market.
Paul Mullaney, managing director for CarVal Investors’ North American Real Estate businesses, said in prepared remarks Gryphon has built an institutional, data-driven platform with extensive multifamily lending expertise, which meshes well with CarVal’s investment strategy.
CarVal has opportunistically invested $128 billion in 5,525 transactions across 82 countries and currently has about $10 billion in assets under management in corporate securities, loan portfolios, structured credit and hard assets.
Calling the joint venture well-capitalized and synergistic, Angelo LoBosco, Gryphon managing partner, said in a prepared statement they look forward to building out the Gryphon-CarVal platform by successfully executing on their investment strategy.
Industry veterans LoBosco and Managing Partner Jim Hopkins founded Gryphon in 2016 in response to the demand for capital caused by stringent regulation imposed on traditional bank lenders. Over their careers in real estate operating, development and financial structuring, LoBosco and Hopkins have completed more than $8 billion in real estate transactions.