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Pender Capital Achieves Remarkable Growth in the Real Estate Credit Fund

Pender Capital has completed 2024 on a high note, showcasing significant activity within the Pender Capital Real Estate Credit Fund. Specializing in short-term, senior secured commercial bridge loans, the firm has established a noteworthy portfolio that reflects the dynamic nature of the real estate investment landscape.

As of the end of 2024, the fund managed 37 active loans with a total value of $504.1 million. This impressive figure is underpinned by an estimated asset value of $833.5 million, resulting in a commendable loan-to-value ratio of 62.39%. This positioning places Pender Capital in a favorable light, especially as it navigates a competitive market characterized by reduced lending options.

In the final quarter of 2024 alone, Pender Capital received an astonishing 193 financing requests amounting to $2.9 billion. The company noted a positive trend in the quality of these submissions, indicating a robust demand for its financing solutions. During this quarter, the firm successfully closed two transactions worth $11 million, highlighting its continued origination success despite potential market constraints.

Cory Johnson, CEO of Pender Capital, commented on the current state of affairs, stating, "Funding numbers would have been significantly higher if it were not for current capital constraints that caused us to turn away several strong deals with quality assets and sponsorship groups." This caveat emphasizes the ongoing challenges faced in the market while also predicting an increase in origination activity as conditions evolve.

Throughout 2024, Pender Capital closed a total of 15 loans, amounting to $245.4 million. This output underscores the fund's strategic focus and operational capabilities in a fluctuating economic environment.

The Pender Real Estate Credit Fund, established in April 2023, was included on various advisory trading platforms in 2024, such as Pershing Advisor Solutions, Schwab, and Fidelity. Its inclusion reflects a concerted effort to reach a broader base of investors and emphasizes its growing acceptance in the investment community.

The fund is designed to leverage the burgeoning investment climate fueled by decreased lending options and increased borrower needs for short-term, secured loans. By focusing on lower middle-market short-term bridge loans secured by senior positions in commercial real estate assets across the Sunbelt and other key regions, Pender Capital is positioning itself to capitalize on opportunities that arise in the market.

With a minimum investment threshold of $2,500 and no accreditation requirements, the fund's closed-end interval structure has attracted a wave of new participants, including wealth management and financial advisors. This accessibility not only aids in diversifying investor portfolios but also reflects a shift towards more inclusive investment strategies.

The narrative around Pender Capital is one of resilience and positive growth, with expectations for increased origination activity as market conditions improve. Investors and prospective clients alike are encouraged to consider the Pender Real Estate Credit Fund as a viable alternative investment opportunity.

Founded and operated by a team of seasoned commercial real estate professionals, Pender Capital remains committed to focusing on credit-based opportunities within the commercial real estate sector. The firm has successfully originated approximately $1.37 billion in commercial real estate credit, representing assets valued at over $2.23 billion as of December 2024.

For more detailed information on investment strategies and structure, interested parties can visit Pender Capital's website, where further insights and performance data can be found.

Important Note: This article serves only as an informational resource and should not be taken as investment advice. Individual assessment and consultation with professional advisors are recommended before considering any investments in Pender Capital’s funds.