3650 REIT launches transitional lending platform

The firm aims to originate around $500m of transitional loans in 2023.

Commercial real estate lender 3650 REIT has rolled out a transitional lending platform through which it is targeting $500 million of originations this year for sponsors pursuing recapitalizations or flexible loan structures for cash-flowing or newly constructed projects with a clear path to stabilization.

The launch of the strategy – which sits alongside bridge and event-driven, and stable cashflow platforms – allows the national lender to offer borrowers a broader spectrum of lending products at a time when banks and other alternative lenders are pulling back. 

“In today’s uncertain capital markets environment, we feel it is critical to offer borrowers a range of lending options to accommodate the full breadth of transactions that are being completed,” said Toby Cobb, 3650 REIT’s co-founder and managing partner.

Additionally, the platform allows 3650 REIT to provide loans across the full lifecycle of a property, Cobb added.

The new platform is overseen by Nishant Nadella, managing director and head of SASB and transitional lending, and will offer loans in the range of SOFR plus 350-550 basis points, depending on property type, leverage profile, sponsor and business plan.

Nadella said: “Importantly, these loans will offer borrowers bespoke, short-term financing solutions as they navigate today’s challenging financing markets along with property-specific business plans.”

For every loan originated on its balance sheet, 3650 REIT acts as the loan servicer and provides high-touch asset management that is vital for transitional borrowers. The manager last year originated $1.66 billion of loans in its bridge and event-driven, and stable cashflow platforms. Most recently, 3650 REIT originated a $76.5 million construction loan to finance the completion of Elevate Apartments in Dania Beach, Florida.