Specialist lending platform S3 Capital receives a $79 million investment from OakNorth
In a move that underscores the growing demand for specialized financing solutions in the real estate sector, digital challenger bank OakNorth has provided $79m (£59m) of funding to S3 Capital, a New York-based credit platform specializing in construction and bridge loans for multifamily real estate developments.
As a leading player in the real estate lending market, S3 Capital has originated more than $6.5bn across 700 transactions to date. The funding from OakNorth will be used for a 13-storey multi-family project in New Jersey and the development of 27 new condos in South-Central Brooklyn.
OakNorth's ability to deliver bespoke funding has been demonstrated through their work with S3 Capital on multiple transactions. The focus of OakNorth on the lower mid-market businesses that are often overlooked by traditional banks is a unique aspect of their service.
Co-Founder of S3 Capital, Joshua Crane, added that they continue to access a wider variety of clients through note-on-note facilities, which are a key growth area in their US-based portfolio. S3 Capital, which was established in 2013 by Crane and Robert Schwartz, specializes in small balance loans under $20m and large balance loans up to $300m. The loan from OakNorth is split across two separate note-on-note facilities.
The partnership between OakNorth and S3 Capital is a testament to the growing trend of technology-driven lending platforms providing flexible and accessible financing options to the real estate sector. Both parties have a deep-rooted experience in the real estate lending market, with S3 Capital's strong reputation for arranging creative financing solutions contributing to their success.
Real estate credit platforms, like those specializing in development loans, typically provide financing solutions to developers, investors, or property owners. These platforms often leverage technology to streamline the lending process, offering more efficient and agile alternatives to traditional banking avenues. As the real estate market continues to evolve, there is a growing demand for specialized financing solutions that can accommodate the unique needs of developers and investors.
While specific details about S3 Capital's parent company, Spruce Capital Partners, were not provided, the company's growth trajectory and partnership with OakNorth highlight their commitment to providing innovative financing solutions in the real estate sector.
The funding from OakNorth will be utilized for both a 13-storey multi-family project in New Jersey and the development of 27 new condos in South-Central Brooklyn, underscoring the company's role in facilitating specialized finance for real estate developments. OakNorth's focus on the lower mid-market businesses often overlooked by traditional banks, along with their ability to deliver bespoke funding solutions, is a unique aspect of their service, thus contributing to their partnerships with real estate lending market leaders like S3 Capital.
