Harbor Group raises $245M for multi-family lending platform

Harbor Group International closed a $245 million fundraising round for its Whole Multifamily Lending platform, which began originating and closing loans in 2020. The platform provides senior mortgage bridge financing on multifamily assets to across the United States. The Canada Pension Plan Investment Board has committed $110 million in equity as the initiative’s lead investor.

HGI expects to close $300 million in senior multi-family loans by the end of January and $450-500 million in loans by the end of the first quarter of 2021.

HGI decided to create a senior loan origination platform when the early days of the pandemic created a liquidity crisis with other sources of debt capital. This created a window of opportunity to enter the bridging loan market, according to HGI Chairman Richard Litton “With a n.

HGI has been sourcing and managing debt investments for more than a decade, making preferred stock investments and mezzanine loans in multifamily properties across the United States. He’s one of the biggest buyers of Freddie Mac’s multi-family subordinated debt positions, or “B-pieces.” In 2019, HGI secured a $180 million investment commitment from CPPIB Credit to support the Freddie Mac, or KJ, supplemental loan program.

The lending program will target value addition and new construction assets nationwide.

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