As banks continue to scale down on lending amidst tighter LTC constraints and reduced deposits, owners and developers are turning towards nonbank lenders, such as private capital and C-PACE lenders like PLG, to get creative with their capital.
As banks continue to scale down on lending amidst tighter LTC constraints and reduced deposits, owners and developers are turning towards nonbank lenders, such as private capital and C-PACE lenders like PLG, to get creative with their capital.
Why are nontraditional lenders a viable option in today's market? Here are a few benefits:
They can lend more - nonbank lenders often don't have lending limits and can therefore provide more capital.
No deposit requirements - borrowers do not have to move around funds or lock in deposits into a certain bank.
Nonrecourse loans - most bank loans require full recourse, while nonbank lenders offer partial or non-recourse loans, such as C-PACE loans.
Faster approval - oftentimes, nonbank lenders are smaller organizations that have less administrative obstacles in the way of credit committees and decision-markers.
Philly Fishtown apartments break ground after developers secure creative financing
“When a local bank backed out at the closing table, PLG worked with JLL to bring a partner lender, Builders Capital, to complete the capital stack," PLG originator Matthew McCormack said. "We were pleased that C-PACE enabled this project to move forward and to have completed our first Pennsylvania project.”
NYC's C-PACE new construction guidelines have been released
New York City's long-awaited new construction guidelines have finally been released, which include some exciting improvements to the city's previously stalled program.
Some highlights:
- Reduced SIR requirements across the program
- No limit on term
- The C-PACE loan can't exceed 30% of the total construction costs.
Originators Robbie Pinkas and Ina Montejo win our first annual pitch competition!
During our summer team meeting, we held our first annual pitch competition, where our originations team pitched C-PACE and PLG to a developer and broker. Ina Montejo and Robbie Pinkas were selected as the GOATs of the competition!
