NewPoint Real Estate Capital Launches Build-to-Rent Financing Program
New York, NY (October 30, 2023) – NewPoint Real Estate Capital (“NewPoint”) announces the launch of NewPoint BTR, a build-to-rent financing program that provides customized short-term bridge loans to high-quality real estate investors for purpose-built single-family rental (SFR) communities on a national basis. NewPoint BTR’s financing options support a variety of executions – from purchases to cash-out refinances – during the lease-up and stabilization period that are structured for take-out with an Agency or other permanent debt solution.
"Built-to-rent communities play an increasingly important role in the housing market,” said David Brickman, Chief Executive Officer of NewPoint. “With shifting demographics coupled with increases in the costs of homeownership, not everyone who wants to live in a single-family home can afford to purchase one. Our investment in a build-to-rent financing platform demonstrates NewPoint’s ongoing commitment to supporting all sectors of the rental housing market in the U.S.”
Targeting loans of $10 million to $50 million secured by purpose-built communities of SFR homes (townhomes, attached homes or detached homes), NewPoint BTR loans offer full-term interest only and 24-month or longer terms, with additional extension options. The goal of the program is to provide developers and investors with an efficient path to permanent financing, allowing owners to set BTR assets up for long-term success in a volatile environment.
“We’ve created something unique in the market by pairing non-recourse financing and competitive rates with NewPoint’s superior customer service and reliability,” said NewPoint Managing Director Matthew Zall, who is serving as co-head of the new lending platform along with Michael Golfman, also a Managing Director. “The end result is an incredibly attractive solution for investors looking to grow or optimize their build-to-rent portfolios.”
Build-to-rent construction activity accelerated in 2022, with a 31.7 percent jump in starts year-over-year to 79,000 units, which represents an all-time high of roughly 8% of all single-family starts, according to the NMHC.
"The build-to-rent product has increasingly proven to be an attractive option for working families, downsizing empty nesters, and even individuals who want the privacy of a single-family home but still want that sense of community,” Golfman added. “We are excited to support this growing sector with high-quality financing solutions.”
NewPoint BTR represents the third proprietary offering NewPoint has brought to market since its launch in June 2021. The inaugural Bridge Lending program, focused on multifamily properties, launched in December 2021 and was well received by the market, with nearly $1 billion in originations during its first year. In August 2022, the company launched NewPoint Impact, a platform pairing private capital with government-subsidized products to deliver an innovative set of next-generation affordable housing financing solutions.
About NewPoint Real Estate Capital
NewPoint Real Estate Capital LLC (“NewPoint”) is a prominent commercial real estate finance company delivering lending solutions to investors of multifamily, affordable housing, seniors housing, healthcare, and manufactured housing properties nationwide. NewPoint leverages technology, data, capital, and the expertise of its industry-leading team to provide loan origination, servicing, execution, and a suite of Agency and curated proprietary products to meet the evolving needs of borrowers. In addition to being a Fannie Mae DUS®, Freddie Mac Optigo®, and HUD/FHA MAP and LEAN Lender, NewPoint also offers proprietary bridge and affordable housing financing.
Contacts:
Elyse Bandel
NewPoint Real Estate Capital
Elyse.Bandel@NewPoint.com
917.447.0143
Michael Ratliff
NewPoint Real Estate Capital
Michael.Ratliff@NewPoint.com
917.636.3578