Development markets from New York to Los Angeles have fresh money to play with.
Silverstein Capital Partners, Larry Silverstein’s home lending operation, has raised an additional $2 billion, the company announced Monday.
The company’s investments crisscross the United States, 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. million in 2018 to JDS Development’s mixed-use tower at 9 Dekalb Avenue in Brooklyn.
Silverstein Capital was launched in 2018 with the backing of a sovereign wealth fund and a “deep-pocketed” pension fund. Since then, it has issued about $2 billion in condominium construction and inventory loans.
The new money comes from those two investors as well as three new ones, whose identities did not appear on the company’s limited filings with the Securities and Exchange Commission.
“SCP’s loans reflect Silverstein’s overall business strategy of investing in large-scale, mixed-use projects in growing national markets,” said Marty Burger, CEO of Silverstein Properties. The new fund, like previous ones, will focus primarily on construction loans, he added.
Silverstein is one of many alternative investors who have stepped in after tough regulations were imposed on banks following the financial crisis. The firm initially targeted construction loans, 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 overseas investors for credit loans, while Madison Realty Capital put huge sums to work in a growing number of cities.