Electra Capital Enters the Bridge Loan Market

Boutique lender Electra Capital has officially entered the bridge loan market. The firm has funded a $92 million bridge loan for Four West Las Olas, a 25-story luxury apartment building in downtown Fort Lauderdale, Fla.

Not only does this loan mark the lender’s entry into the bridge loan space, it is also the largest loan that Electra Capital has funded to date. Electra Capital partnered with Benefit Street Partners Realty Trust, a public non-traded mortgage REIT, to provide the senior mortgage of $76 million. Electra Capital held a $16 million mezzanine loan. Despite the size of the loan, the deal closed in 22 days.

During the pandemic, all of Electra Capital’s other loans have been less than $15 million. The loans include $12.2 million in preferred equity for the acquisition of the 330-unit Pines at Woodcreek Apartments in Houston, Texas; $3.25 million preferred equity investment in The Carter, a 300-unit apartment community in Norcross, Georgia; a $5.5 million preferred equity investment in Stonebridge at City Park Apartments, a 240-unit community in Houston, Texas; and $4.1 million preferred equity investment in Element at University Park, a 192-unit apartment community in College Station, Texas.

Developer of Four West Las Olas Elevate Partners secured the $92 million loan, and Cushman & Wakefield arranged the financing. The loan replaces an existing construction loan and will be used to complete lease up at the property, which is currently 58% leased. The property has a mix of one-, two-, and three-bedroom floor plans as well as penthouse units. All of the units include high-end finishes, like quartz countertops, stainless steel appliances, full size washer/dryers, private balconies and view of the Atlantic Ocean and New River. The community is equipped with a billiards lounge, rooftop pool, sky clubroom, 24-hour fitness center and a business center.

Demand for bridge loans is high in the current environment and lenders are responding in kind in most cases. Taconic Capital Advisors, for example, recently secured a $190 million bridge loan through CIM Group for International Plaza I and II, a 780,000-square-foot double tower located in the Far North Dallas district. The loan has a five-year term and a floating rate.

In addition, Kennedy Wilson and Fairfax Financial Holdings have launched a $2 billion initiative to provide bridge loans. The duo funded its first loan under the new platform in July, a $63 million loan for a multifamily community in the Boulder, Colorado, area. Like Four West Las Olas, the loan will be used to support initial leasing of the newly constructed project, which includes a mix of studios, one-bedroom, and two-bedroom multifamily units and ground-floor retail space.