Harbor Group Raises $245M for Multifamily Whole Loan Platform
The company expects to close $300 million in multifamily senior loans by the end of January and $450 million to $500 million by the end of the first quarter of 2021.
Harbor Group International has closed on a $245 million equity raise for its multifamily whole loan platform, which began originating and closing loans in 2020. The platform provides senior mortgage bridge financing on multifamily assets throughout the US. Canada Pension Plan Investment Board committed $110 million of equity capital as the lead investor for the initiative.
HGI expects to close $300 million in multifamily senior loans by the end of January and $450 million to $500 million in loans by the end of the first quarter of 2021.
HGI decided to establish a senior loan origination platform when the early days of the pandemic created a liquidity crunch with other sources of debt capital. That created a window of opportunity to enter the bridge lending market, according to HGI president Richard Litton”With a growing n.
HGI has been sourcing and managing debt investments for more than a decade, making preferred equity investments and mezzanine loans on multifamily properties across the US. It is one of the largest buyers of Freddie Mac multifamily subordinated debt positions, or “B-pieces”. In 2019, HGI secured a $180 million investment commitment from CPPIB Credit to support Freddie Mac’s Supplemental Loan, or KJ, program.
The lending program will target value-add and new construction assets nationwide.