NewPoint Sees $1.5 Billion of Multifamily Loan Originations This Year, Plans Bridge-Lending Platform
NewPoint Real Estate Capital, which was formed earlier this year through Meridian Capital Group’s acquisition of Barings Multifamily Capital, is on track to originate $1.5 billion of multifamily loans this year.
The Plano, Texas, lender writes loans on behalf of Fannie Mae, Freddie Mac and Department of Housing and Urban Development programs. It plans to launch a proprietary bridge-lending program later this year or early next that could be used to bolster its lending pipeline.
Its goal is to originate $10 billion of loans annually by 2026. That would make the company among the most-active lenders in the multifamily world, a business dominated by the likes of Wells Fargo Bank, Berkadia and Greystone.
Barings had started originating agency loans through its 2016 acquisition of ACRE Capital Holdings from an affiliate of Ares Management.
The move into the bridge-lending business by NewPoint is a natural, explained David Brickman, chief executive, who early this year had joined the company after a 22-year career at Freddie Mac, where he most recently was chief executive. During his tenure with the agency,
Brickman was largely responsible for creating Freddie’s K-series securitization program, which helped the agency manage its lending risk. He was put in charge of Freddie’s multifamily lending business in 2011.
He said that providing short-term loans would be complementary to NewPoint’s core business of writing permanent agency loans. Its bridge program would be capitalized by third-party institutional investors. The idea would be to tap Meridian’s extensive network to identify lending opportunities across the country.
The bridge lending platform would target investors who acquire older properties, renovate them, then seek permanent Fannie, Freddie or HUD loans with seven- to 10-year terms, presumably through NewPoint.
NewPoint most recently originated a $122.7 million Fannie loan against the 894-unit Central Astoria Apartments in Queens, N.Y.
The loan allowed the property’s owner, Cammeby’s Management Co. of New York, to retire $77.9 million of Freddie debt that was securitized through FREMF, 2012-K18. The old loan was written by Beech Street Capital, which Meridian also had backed and was acquired in 2013 by Capital One Financial Corp. Central Astoria, at 20-66 27th St., has one-, two- and three-bedroom units. It was 98 percent occupied at the end of June, according to servicer data compiled by Trepp Inc. Cash flow, meanwhile, has remained relatively flat over the past nine years. During the 12 months through last June, it amounted to $7.82 million. In 2012, it was $8.14 million.
– Originally published on crenews.com
Commercial Real Estate Direct – October 19, 2021