Amid strong demand for private CRE financing, RIAs and family offices are continuing to increase allocations to alternatives and private debt funds.
LOS ANGELES, Sept. 9, 2024 /PRNewswire/ — Pender Capital (“Pender”), a provider specializing in short-term, senior secured commercial bridge loans, has announced the completion of two financing transactions for properties located in the Dallas-Fort Worth and New York metropolitan areas. The firm also continued to see growing interest from Registered Investment Advisors (RIAs) in the Pender Real Estate Credit Fund, a continuously offered closed-end interval fund focused on private commercial real estate debt.
“We’ve seen CRE debt funds like ours gaining popularity as of late due to a reduction in lending by banks, spurred by issues in the regional banking sector and uncertainty in regulatory requirements,” said Pender Capital CEO Cory Johnson. “Funds like ours have filled the void left by banks by capitalizing on higher equity requirements for banks holding high-risk loans.”
The first transaction involved a loan of $27.5 million for a modern, recently renovated Class A multifamily complex situated in the most highly sought-after retail and residential area of Uptown Dallas. This property features an occupancy rate of approximately 93% and comprises 159 units, with Pender Capital’s loan reflecting a loan-to-value ratio of 48%.
The second loan was secured for a 320,000 square foot office complex of institutional quality, positioned 13 miles west of Downtown Newark, in a neighborhood that is consistently recognized as one of the wealthiest not only in New Jersey but across the United States. This submarket near Newark is particularly attractive to high-level corporate office tenants due to its convenient access to the NJ Turnpike, Newark Liberty International Airport, and one of the most desirable retail corridors in the metropolitan area. Pender Capital extended a loan of $36.4 million aimed at refinancing this property.
Investible Opportunities
Industry surveys continue to show that a growing number of RIAs, family offices and other advisor professionals are allocating a portion of client assets to private debt and other alternatives, and that interest in alts is spreading to accredited and non-accredited investors.
The Pender Real Estate Credit Fund, which was launched in April 2023, aims to capitalize on a ripe investment environment spurred by a reduction in lending options coupled with increased borrower demand for short-term loans. The Fund seeks to generate risk-adjusted current income, while seeking to prioritize capital preservation by originating lower middle market short-term bridge loans that are secured by senior position collateral in commercial real estate assets across the Sunbelt, and other key “flyover” regions of the U.S.
With a $2,500 investment minimum and no accreditation requirements, the closed-end interval fund structure is attracting capital from new participants, such as wealth management and financial advisors, who are now able to allocate with lower minimum thresholds.
Pender Capital (“Pender”) is a niche investment manager dedicated solely to commercial real estate credit-based opportunities. Pender offers capital solutions to borrowers investing in or owning properties with equity protection while providing investors with attractive risk-adjusted returns. The firm is owned and operated by a team of seasoned commercial real estate professionals with hands-on real estate experience, credit skills, and sophisticated investment banking expertise. Pender has originated $1.261B in commercial real estate credits representing over $2.083B in asset value. Learn more at https://www.pendercapital.com/.
IMPORTANT INFORMATION – PENDER REAL ESTATE CREDIT FUND
This material is published as assistance for recipients but does not constitute investment advice and is not to be relied upon as authoritative nor to be substituted for one’s own judgement. This information is not a recommendation to purchase or sell a security or follow any strategy or allocation. Before making any investment decision, you should seek expert, professional advice and obtain information regarding the risks, liquidity, legal, and regulatory limitations for the fund.
BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER THE FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. THIS AND OTHER INFORMATION IS IN THE PROSPECTUS, A COPY OF WHICH MAY BE OBTAINED FROM PENDER CAPITAL AT 310-853-8001. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.
The Shares are speculative and illiquid securities involving substantial risk of loss. An investment in the Fund is appropriate only for those investors who do not require a liquid investment, for whom an investment in the Fund does not constitute a complete investment program, and who fully understand and can assume the risks of an investment in the Fund. No public market for Shares exists, and none is expected to develop in the future. An investor’s participation in the Fund is a long-term commitment, with no certainty of return. No guarantee or representation is made that a Fund will achieve its investment object, and investment results may vary substantially year from year. Please see the prospectus for details of these and other risks.
Pender Real Estate Credit Fund is distributed by UMB Distribution Services, LLC which is not affiliated with Pender Capital Management LLC.
SOURCE Pender Capital
