Lument Secures Over $198 Million in Bridge Loans for Multifamily Properties
Lument Secures Over $198 Million in Bridge Loans for Multifamily Properties
In December 2024, Lument, a leading name in commercial real estate finance, announced a significant achievement by closing more than $198 million in bridge financing tailored for multifamily real estate. This move demonstrates Lument's ongoing commitment to supporting diverse business plans and the wider housing market across the United States.
These loans are set to facilitate various operations including leasing, acquisition, and construction across seven multifamily properties, which together encompass more than 1,500 residential units across six states. Here’s a breakdown of the significant projects funded:
- - Olympia, WA: Refinance of $60 million for a multifamily property to assist in lease-up efforts.
- - Macon, GA: A $37 million lease-up refinance for another multifamily property.
- - Dayton, OH: A phased lease-up refinance valued at $31 million for a build-to-rent (BTR) project.
- - Groveport, OH: Also related to a build-to-rent property, Lument provided $25 million for phased lease-up refinancing.
- - Miami, FL: Lument facilitated a $22 million timing refinance for an affordable housing property.
- - Lafayette, IN: This city saw a lease-up acquisition financed with $17 million.
- - Bellflower, CA: A refinancing deal of $6 million for an age-restricted multifamily property wrapped up this impressive closing.
Beyond these substantial closes at the end of 2024, Lument also reported a significant increase in borrower interest especially during the fourth quarter. Currently, an additional $170 million in bridge loans are under application and are expected to close in early 2025, further emphasizing the robust demand for such financial solutions.
James Flynn, CEO of Lument, remarked that this bridge program has proven to be notably effective, offering clients strategic support amid a changing market landscape. As new constructions move towards stabilization, Lument’s capabilities in providing a smooth transition into permanent financing become increasingly crucial.
Lument's bridge financing program is designed for loans starting at $10 million and focuses on multifamily, affordable housing, or senior housing properties. These loans, which are interest-only and have floating rates, typically span a period of six to 36 months, with options for extensions and customized yield maintenance periods.
The organization behind this initiative, Lument Investment Management, LLC, acts as the external manager and advisor to Lument Finance Trust, Inc., a public REIT traded on the NYSE under the ticker LFT. As of late September 2024, Lument manages an impressive loan portfolio nearing $1.2 billion, 93.2% of which is collateralized by multifamily assets.
Founded as a subsidiary of ORIX Corporation USA, Lument stands out in the realm of commercial real estate finance. It provides a comprehensive suite of tailored capital solutions for investors in multifamily, affordable housing, senior housing, and healthcare real estate. The firm offers a wide array of options including Fannie Mae, Freddie Mac, FHA, USDA, and balance sheet bridge financing, among other capital markets lending products. Moreover, Lument extends advisory services, aiding in investment sales, investment banking, and investment management across its extensive workforce of over 600 professionals distributed in more than 30 offices nationwide.
For those intrigued by the multifamily property market dynamics and the ongoing financial strategies that impact this sector, Lument represents a significant player ready to adapt and evolve in a transforming landscape of real estate finance. For further details about their offerings and latest news, visit their official website.
Topics Financial Services & Investing）
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