S3 Capital raises $335m for residential development fund

Private real estate credit manager S3 Capital has raised $335m (£264.6m) at the first close of its latest fund.

The New York-based firm, which focuses on residential development projects, said the fund attracted commitments from a wide range of investors including major institutions, asset managers and family offices.

S3 Capital’s third large balance loan fund, dubbed Fund III, provides bridge and construction financing for middle market real estate developments in the US.

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“We are thrilled to reach this significant first milestone for Fund III, with commitments from new investors as well as renewed commitments from existing investors,” said Joshua Crane, co-founder and managing principal of S3 Capital. “This fund continues our commitment to delivering consistent and strong, risk-adjusted returns to our investors by deploying capital into carefully selected real estate credit opportunities.”

Robert Schwartz, co-founder and managing principal of S3 Capital, added: “This fund is designed to meet the needs of sophisticated investors looking for compelling credit opportunities in an evolving real estate landscape.

“We remain focused on delivering value by providing innovative financing solutions to our borrowers while capitalising on unprecedented market opportunity in our space.”

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S3 Capital is the lending arm of Spruce Capital Partners, a real estate investment firm that acquires and manages multi-family rental housing. It has originated more than $5bn across more than 650 loans since exception.

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