Trinity Street Capital Partners, a full service real estate finance company, announced the expansion of its non-recourse construction and permanent finance program, with loan amounts up to $250 million and up to 85% of cost for multifamily, industrial and self storage properties. For office, retail and hospitality properties, the maximum loan-to-cost is 65%. The program targets the top 200 metropolitan statistical areas in the United States, with interest rates starting at 30-day Libor plus 2.50%.
The expansion comes as traditional banks remain cautious due to general economic conditions or overexposure to certain property and loan types. A spokesperson for Trinity Street Capital Partners noted that the non-recourse construction lending program has gained considerable traction in recent months. While President Trump's pressure on the Federal Reserve led to a recent 25 basis point cut in interest rates, the benchmark 10-year Treasury rate has not contracted as much as the real estate industry had hoped, creating opportunities for alternative lenders.
Trinity Street Capital Partners is now securing major deals across the country by combining its non-recourse construction lending programs with both bridge and permanent finance options. The firm's permanent program is originating loans with rates starting at the 10-year U.S. Treasury plus 150 basis points, up to 75% of value.
The company focuses on non-recourse, high leverage senior and subordinate debt, as well as preferred equity, with investments starting at $10 million on income-producing properties including anchored-retail, office, industrial, multifamily, manufactured housing communities, and self-storage properties throughout the United States. For more information, visit www.trinitystreetcp.com.
This announcement is significant because it provides experienced owners and investors with access to non-recourse financing at high leverage levels, addressing a gap left by traditional lenders. The program's expansion could help stimulate real estate development and acquisition activity in a market where conventional financing remains constrained.
