(NEW YORK, NY) — Silverstein Properties, a New York City-based development firm, has launched a real estate lending venture.
The new branch, Silverstein Capital Partners, will provide loans for projects spanning from office and industrial to residential and retail, according to Bloomberg.
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.
— Silverstein Properties (@SilvProp) October 4, 2018
Most of the capital for the venture will come from a partnership with a sovereign wealth fund and a pension fund. The company has declined to name them.
Chief Executive Officer, Marty Burger, states that the venture will start lending immediately and expects annual returns of 10 to 15 percent.
“There were a lot of banks that couldn’t handle the loans,” 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.”
The minimum loan size is $25 million and there is no maximum. According to Burger, there are deals already in the making.