OakNorth provides $79m to specialist lending platform S3 Capital
OakNorth has provided $79m (£59m) of funding to specialist lending platform S3 Capital.
The loan from OakNorth – split across two separate note-on-note facilities – will be used to develop a 13-storey multi-family project in New Jersey, as well as develop 27 new condos in South-Central Brooklyn.
“These transactions represented another exciting opportunity to support a company that we’ve been hugely impressed with for several years now,” said Dylan Jagjivan, associate director of debt finance at OakNorth.
Read more: S3 Capital raises $335m for residential development fund
S3 is a New York-based credit platform and the private lending arm of Spruce Capital Partners, which specialises in construction and bridge loans for multifamily real estate developments.
Set up in 2013 by Joshua Crane and Robert Schwartz, S3 Capital focuses on small balance loans under $20m and large balance loans up to $300m. It has originated more than $6.5bn across 700 transactions to date.
OakNorth is a digital challenger bank that focuses on serving the lower mid-market – defined as businesses with £1m-£100m in turnover that are looking to scale but are often overlooked by traditional banks.
Read more: Faes & Co gets OakNorth funding for US bridge finance business
“Both Joshua and Robert are industry stalwarts who have a deep-rooted experience in the real estate lending market. Note-on-note facilities continue to enable us to access a wider variety of clients which we might not have access to typically and are key growth area in our US-based portfolio going forward.”
“At S3, we continue to pride ourselves on our ability to arrange creative financing solutions, which has allowed us to become one of the most active construction lenders nationally,” added Joshua Crane, Co-Founder at S3 Capital.
“Having now worked with Dylan and the OakNorth team on multiple highly complex transactions, we knew they had the ability to deliver the bespoke funding we needed for these projects.”
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