Hudson, RXR Launch Joint Lending Platform for New York Region

February 21, 2012
By Barbra Murray, Contributing Editor

Real estate fund manager Hudson Realty Capital L.L.C. and RXR Realty, a private real estate company, have joined forces to create a commercial real estate lending platform focused on the New York Tri-State market. The companies plan to help fill the void left by banks and other traditional lenders that, in the current economic environment, shy away from underwriting certain loans.

Together, relying on their established business relationships, the companies will offer borrowers first-mortgage bridge loans as well as B-Notes, mezzanine and preferred equity. The companies will each have distinct tasks in the joint endeavor. RXR will spearhead real estate underwriting, while Hudson will bring to the table its well-honed skills in due diligence, asset management and loan servicing. “The joint venture will be mutually beneficial and is a natural extension of both Hudson and RXR’s core competencies,” David Loo, managing director and principal with Hudson, noted in a prepared statement.

The lending vehicle will provide financing in sums ranging from $10 million to $50 million, and practically no sector of the commercial real estate sector will be left behind. Financing will involve a bevy of asset types, including industrial, multi-family, office, retail and self-storage.

While the capital markets are slowly warming up after a deep freeze that began in 2007, they continue to give the cold shoulder to many commercial real estate borrowers. Hudson and RXR are not alone in the movement to do what many lenders may not be so keen to do in certain cases. Last November, a group of real estate finance experts formed Silver Arch Capital Partners to offer low-cost, fast funding to owners, investors and developers in search of outside-the-box financing.